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 and SUN]

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 on job work applies unless job work amounts to manufacture, in which case it is non-taxable.
Whether job work attracts service tax depends on its character: if the job work is integral to or tantamounts to manufacture of excisable goods, it is not subject to service tax. If not part of manufacture, job work charges are taxable as services such as repairs and maintenance, erection services, or labour contract charges.