Service tax applicability on job work done

[BAL KRISHAN GARG]

Sir, My client A is doing job work on piece rate basis for B a establishment in Baddi in Himachal Pradesh and for C a establishment in Delhi .His labour are working in these estiblishments and the payment was made to A after confirmation from the Quality confirmation department of the establishments and calculated on piece rate basis. Here B is exempted from excise duty and C is not exempted from Excise . A has done work up to august , 2009 nearly Rs.5 - 6 lacs in total up to date . Now M/S B asked to A for registration in Service Tax and ready to pay the tax. The question is Here B is exempted from payment of excise duty whether the Job Work done by A will be chargable to Service tax on the job work done by A in future as Notification 8 /2005 Explain that if any job work in done on the material supplied by the service receipient then it will be exempted from service tax provided excise duty is payable by receipient ? Further he will do job work on the material provided by C also in Delhi .Here C is paying Excise Duty whether A is liable to pay service tax on the job work for C ? My second querry is when A will get the Registration under Service Tax and the same bill book will carry on i.e. for B AND FOR C WHETHER HE CAN CLAIM SERVICE TAX EXEMPTION UNDER NOTIFICATION 8 /2005 ON THE JOB WORK DONE ON THE MATERIAL RELATED TO c IN DELHI ? How the accounts will be prepared from Service Tax Angel in a case when there are two units one is exempted and another is excise paying . On what amount A has to pay Service tax. Thank to all friends . BAL KRISHAN GARG

AI Summary

Job Worker Challenges Service Tax Applicability Under Notification 8/2005 Due to Exemption and Excise Duty Issues A client, A, performs job work on a piece rate basis for two establishments: B in Himachal Pradesh, which is exempt from excise duty, and C in Delhi, which is not. A's work is subject to quality confirmation before payment, and the total work value up to August 2009 is Rs. 5-6 lakhs. B requested A to register for service tax, but A questions the applicability of service tax under Notification 8/2005, which exempts job work from service tax if excise duty is payable by the recipient. The response clarifies that if the processes are excisable, A is not liable for service tax, regardless of B's exemption or C's excise duty payment.