Service Tax Applicability

[shanmukh il]

Dear sir,

 

We are one of watch case and auto components manufacturers in Tumkur, Karnataka.  We required one clarrification on Service Tax frount.

 

We are the manufacturers of watch cases & auto components registered under excise, service tax and KVAT.  Recently we received an job work order from our new customer who is located in Bangalore to supply dental care components.  Customer is only having KVAT & CST registration.  He will give us the raw material through Delivery Challan for manufacturing of  Rings.  We have to manufacture  Rings and deliver the same to him(Bangalore Address) by raising a Jobwork invoice.  After receiving manufactured of Rings by customer(Bangalore Customer), he will export the same  as it is  without opening the same.

 

Our doubt is since Bangalore customer is not having any excise, service tax registration,  is Service Tax is applicable for this issue while raising the Job work invoice from us to Bangalore Customer.

 

Kindly clarrify the same at the earliest.

 

With regards,

 

 

IL Shanmukh
Manager - Commercial,
CENTURA WATCH CASES PVT.LTD.,
No.21-23-24, Sathyamangala Industrial Area,
TUMKUR-572 104.
Tel: 0816 2211105, 2211632
Mob: 9449241971

AI Summary

Manufacturer Seeks Clarity on Service Tax for Export Job Work; Possible Exemption or Refund Discussed Under BAS Category A manufacturer in Tumkur, Karnataka, sought clarification on service tax applicability for a job work order from a Bangalore customer, who lacks excise and service tax registration. The job involves manufacturing rings from customer-supplied materials, which will be exported without alteration. Responses indicated that the job work might fall under taxable category BAS, making service tax applicable, although it may be exempted through a refund due to export. Another response suggested that if the job work amounts to manufacturing, service tax may not apply. Additionally, the Bangalore customer is expected to pay the invoice amount after TDS deduction.