Tax Invoice

[Pramod Pandey]

D/Sir,

We are an EOU and want to do Sub-contracting/job-work with abroad supplier, raw material will be supply by abroad party and will process on their imported material and send back to them. Which type of invoice/Challan will be raise in this case and what will be tax structure. Is Excise duty and S.tax both will be charge on Invoice & ARE-1. Request you to please help us for making Invoice and relevant documents with complete procedure. It would be great help to us. W/regds, P.K. Pandey

[Surender Gupta]

Various factors are to be kept into account for the intended purpose. Whether the activity is amount to manufacture or liable to service tax? IT can be determined only after detailed analysis.

[YAGAY andSUN]

Well, if it is purely a jobwork, then, you would have to issue an invoice under service tax laws otherwise, if any material is being used during the jobwork, then you would have to issue two invoices,namely one for material used during the jobwork and other for service charges charged by you on the said jobwork done by you.  Please check the fact and revert.

[Pramod Pandey]

Sir, we shall import raw material from foreign party duty free against Procurement Certificate and will process their goods after mixing some our inputs. If we charge excise duty it will treat as a sale and goods being dispatch abroad how can issue two invoices for single material. Two question being raised 1. We are eligible for jobwork charge and 2. Is manufacturer can charge S.tax. pls help in solve this issue

[Pramod Pandey]

Dear Sir,

Please guide us for invoicing prosedure in this matter as it is purely job work and proccessed goods will go back to foreign supplier.




AI Summary

Service tax or excise classification determines invoicing and tax treatment for export bound jobwork on imported materials. Whether processing imported goods for a foreign principal by an EOU is manufacture (attracting excise) or a taxable service (attracting service tax) governs invoicing and tax treatment. Facts: duty free import under procurement certificate; EOU mixes some inputs; processed goods returned abroad. If characterised as jobwork/service, invoice under service tax for service charges; if characterised as manufacture or deemed sale, excise may be leviable and affect excise invoicing and ARE 1. Factual analysis of processing extent is required to determine if separate invoices for materials and service are necessary and whether excise or service tax should be charged.