TaxTMI 
TaxTMI 
JOB WORK OF CONVERSION OF MILK INTO SKIMMED MILK POWDER
service tax on job work
30 Jun 2020 
6 Replies 
4654 Views Asked by
Process amounting to manufacture excludes service tax on job work converting milk to skimmed milk powder, affirming non taxability.
The conversion of milk into skimmed milk powder constitutes a process amounting to manufacture and, being classified under Chapter/Heading 0401, was excluded from service tax under the negative list for the relevant period, rendering the activity out of service tax scope; tribunal authorities are cited in support, while later GST guidance treats the activity under GST rates and administrative relief extended the time limit for issuing show cause notices. (AI Summary)
The conversion of milk into skimmed milk powder constitutes a process amounting to manufacture and, being classified under Chapter/Heading 0401, was excluded from service tax under the negative list for the relevant period, rendering the activity out of service tax scope; tribunal authorities are cited in support, while later GST guidance treats the activity under GST rates and administrative relief extended the time limit for issuing show cause notices. (AI Summary)