Service Tax on Job Work-Goods Exempt from Excise Duty

[PANKAJ GROVER]

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

AI Summary

Service tax on job work remains leviable even if the recipient's goods are exempt from excise duty.
Exemption from central excise for a manufacturing unit does not confer exemption from service tax on job work; in the absence of express provision extending excise relief, the job provider remains liable to charge and pay service tax, because central excise and service tax are governed by separate statutes and an exemption under one Act does not apply to another.