Liability and applicability of excise duty and service tax

[BAL KRISHAN GARG]

Respected Rama Krishna Ji, As you have pointed out regarding the activity of A . Here A is doing Job Work only for B and C. Although his work is having exemption under notification 8/2005 as the notification says if the receiver paying excise duty after the process on the goods is completed by A then Service Tax is not liable.Till date A was doing the work for C on which C was paying Excise Duty hence A was not come under service tax provisions .But B approached A for Job Work but the condition is A must be registered under Service Tax .I hope you understand the whole thing . In brief , A is doing job work for c delhi based enterprises and excise paying and B Baddi based enterprises availing exemption under excise duty approached A for job work provided A must get registration under ser.tax. here A has to billing to B and C . My querry is as the B is not assessable under excise law and ultimately will not pay excise duty on the goods processed by A will attract Service Tax and C is assessable under excise duty and pay the excise duty on the goods processed by A hence A is exempt from service tax as per my understanding .I need further clarification in the matter so necesswary steps may be taken . Thanks BAL KRISHAN GARG

AI Summary

Clarification Sought on Service Tax Applicability for Job Worker under Notification 8/2005; Excise Duty Exemption Involved A discussion on the applicability of excise duty and service tax for a job worker, A, who performs work for two enterprises, B and C. A is exempt from service tax when working for C, as C pays excise duty on processed goods under notification 8/2005. However, B, which benefits from an excise duty exemption, requires A to register for service tax. The query seeks clarification on whether A's activities for B would attract service tax, as B does not pay excise duty. The response suggests determining if A's activities involve manufacturing excisable goods to assess tax liability.