Service tax on job work on machine

[d.v. gupta]

we are doing job work on machine.the customer come with threads and we by processing turns it into fabric. we are only using needles of machine on our behalf. threads are supplied by the customer. in consideration of this we charge by the customer job charges. is service tax is applicable on us. we are only doing labour work. we are not selling any thing.so kindly let us know whether service tax should be charged or not. if charged under which chapter of service tax act.

AI Summary

Clarification Sought on Service Tax for Textile Job Work; Exemption Cited Under Notification No. 14/2004 for Unconditional Relief. A business is performing job work by processing customer-supplied threads into fabric using their machines and seeks clarification on service tax applicability. One response suggests the activity falls under Business Auxiliary Services, requiring service tax unless the client pays duty on the final product. Another response refers to Notification No. 14/2004, which provides a 100% exemption for job work related to textiles, stating that the exemption applies unconditionally, without the requirement of manufacturing excisable goods or the principal paying duty.