A job provider (A) located in Baddi is providing Jobwork services to a manufacturing company (B) located in Baddi. The job receiver company is exempt from charging Excise duty on goods manufactured as it is located in Baddi,HP. Whether the job provider need to charge Service Tax on Job work charges under bussiness Auxiliary Services or the services are non chargeable.
With Best Regards
RAPG & Co.
Chartered Accountants
Service Tax Applicable on Job Work Services Despite Excise Duty Exemption; No Excise Registration Needed Under SSI Exemption. A job provider in Baddi is offering job work services to a manufacturing company exempt from excise duty due to its location. The query concerns whether service tax should be charged on these services. Responses clarify that while units in certain regions are exempt from central excise duty, there is no parallel service tax exemption under the Finance Act 1994. Consequently, service tax is applicable. Additionally, clarification is provided on excise registration requirements, indicating that it is unnecessary if the value of finished goods is below a certain threshold, as per SSI exemption notifications. (AI Summary)
TaxTMI 
TaxTMI 
