57f(4) under service tax act

[Rajesh k]

sir ,

           we have received the raw material from my customer under 57f(4) for doing job work. so my quistion is we have to raise the bill with service tax or with out service tax?.

[Vijay kumar]

Please go through Notification No.8/2005-ST. If the process undertaken by you amounts to manufacture in terms of sec 2(f) of central Excise Act,1944 and the job-worked goods are returned to the supplier and are used in further manufacture and duty is paid on the final product, then no service tax is payable. The said notification grants exemption from payment of Service Tax under BAS in the given situation. In case of further doubt, please mention the details of process undertaken by you and the supplier and whether the final product suffers duty.

[rakshit verma]

57 F (4) is used only when the supplier is paying excise duty. Hence bills are to be raised without payment of duty.

 

Advocate Rakshit verma

[YAGAY and SUN]

Please also refer Notification No. 19/2005-ST. in this regard.

[Dilip Darji]

Dear Sir.

Reply given by Mr.Vijayhumar is absolutely right.

At present Rule 57 F (4) is not in existansace at all.

AI Summary

Job-work exemption: service tax not leviable where process amounts to manufacture and final product bears excise duty.
Service tax on job work is not leviable where the job-worker's operations qualify as manufacture, the job-worked goods are returned to the supplier for further manufacture, and excise duty is paid on the final product; in that situation notification-based relief under the BAS classification permits billing without service tax, subject to verification that the supplier bears excise liability and the relevant notifications' conditions are met.