Liability of service tax on job work

[Vijay Chitte]

I am doing a job work like production and processing of goods on behalf of the client. All raw materials and semi-finished goods supplied by client and after complete the job work, we return back to the said client and this product is dutiable. My question is : 1) We are liable to charge the service tax on job work charges? 2) I understand that , As per Notification No.8/2005-ST, if products are excisable, there is no need to charge the service tax. In this case “SHOULD WE TAKE ANY DECLARATION FROM THE CLIENTS?” that this product is dutiable and don’t charge the service tax on us”. Please give your expert views. from Vijay Chitte

AI Summary

Service Tax Not Applicable on Job Work for Excisable Goods; Refer Notification No. 8/2005-ST for CENVAT Credit Eligibility. A query was raised regarding the liability of service tax on job work involving production and processing of goods supplied by a client. The concern was whether service tax should be charged if the products are excisable, referencing Notification No. 8/2005-ST. Responses clarified that if the job work results in the manufacture of excisable goods, service tax is not applicable, as it would be eligible for CENVAT Credit against excise duty. It was advised to obtain a declaration from clients confirming the goods are excisable. Additionally, if the process does not result in manufacturing, evidence is needed to show the goods are used in finished products cleared with excise duty.