TaxTMI 
TaxTMI 
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
Liability of service tax on job work
24 Jan 2007 
3 Replies 
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Service tax exemption for job work: no service tax where processing results in excisable manufacture; obtain client declaration.
Job work that results in the manufacture of excisable goods is not subject to service tax because any such tax would be creditable against excise. If the process does not amount to manufacture, the non-levy under the notification requires evidence that processed goods are returned and used in finished goods cleared on payment of excise. Job-workers should obtain a declaration or certificate from the client confirming the goods are excisable and will be cleared on payment of appropriate excise duty to support non-levy. (AI Summary)
Job work that results in the manufacture of excisable goods is not subject to service tax because any such tax would be creditable against excise. If the process does not amount to manufacture, the non-levy under the notification requires evidence that processed goods are returned and used in finished goods cleared on payment of excise. Job-workers should obtain a declaration or certificate from the client confirming the goods are excisable and will be cleared on payment of appropriate excise duty to support non-levy. (AI Summary)