Exemption for manufacturing activity

[Guest]

1) I would like to know whether there have been any amendment / changes on notification No. 8/2005-Service Tax dated 01/03/2005.

2) Whether there is any new notification / circular on exemtion in cases whether goods are produced using raw material supplied by the client and goods so produced are returned back to the said client.

[YAGAY andSUN]

Kindly refer Notification No. 19/2005-ST dated 07-06-2005.

[Vijay kumar]

1) as replied above; 2) There is no new notification or circular on exemption from service tax in such cases, except the one issued in the context of alcoholic beverages. If the process undertaken by job worker does not amount to manufacture and the final product cleared by principal mfr. is exempted from duty, then service tax is payable by the job worker under BAS.

AI Summary

Exemption for manufacturing activity: job work may attract service tax where the process does not amount to manufacture. Exemption for manufacturing activity addresses whether job work on client-supplied raw materials is exempt when finished goods return to the client; Notification No. 19/2005-ST is the controlling reference. If the job worker's process does not constitute manufacture and the principal manufacturer's final product is duty-exempt, the job worker's services are taxable under Business Auxiliary Service. No new notifications specifically grant exemption for such job work except limited rules for alcoholic beverages.