Service Tax On Job Work

[Pradeep Kaushik]

Dear Sir/s,

 We are a excisable goods manufecturing company. We are giving some matarial for Job work to be done from outside. My query is the the job worker is liabile to charge the service tax. Please give some refereces for your advice.

My second query : In normal condition, any case, which tax is applicable for job worker.

Best Regards.

Pradeep Kaushik

[YAGAY andSUN]

If jobwork tentamounts to manufacture then there would not be any tax otherwise Service Tax will be applicable.

[MANDAVILLI RAMAKRISHNA]

if the job work is part and parcel of manufacture, no service tax.

 

otherwise, job work charges are taxable to service tax as repairs and maintenance/ erection/

as labour contract charges.

AI Summary

Service Tax Applicability: No Tax on Job Work Constituting Manufacturing; Tax Applies Otherwise for Repairs or Labor Services. A manufacturing company inquires about the applicability of service tax on job work performed by external parties. The question is whether the job worker should charge service tax. Two responses clarify that if the job work constitutes manufacturing, no service tax applies. Otherwise, service tax is applicable, categorizing the charges under repairs, maintenance, or labor contract services.