SERVICE TAX ON JOB WORK & MAN POWER SERVICE.

[SANJEEV JADHAV]

Dear Sir, Our is foundry and we are sending goods outside for job work (Fetteling & Proof Machining). We have also given contracts for man power recruitment services. Please inform our responsibility for paying service tax as per new service tax rules imposed w.e.f. 1.7.2012.

[JAMES PG]

If your taxable turnover is above Rs 10 lacs, you need to pay 75% of the ST applicable for manpower supply. For the goods sent for Job work, it is the liability of the Job worker to pay ST

[Surender Gupta]

You need to provide necessary details such as:

What is your status?

What is the nature of activities undertaken by the Job worker? Is it manufacturing or no?

Whether you are liable to pay duty of excise and registered under central excise?

What is the status of service provider of manpower recruitment services?

[YAGAY and SUN]

The process (Fettelig & proof machining) amounts to manufacture and goods must be returned to your factory presmise, hence no service tax will be applicable.

Surely for manpower supply the Notificaion No. 15/2012-ST will come to in the picture.

AI Summary

Service tax on manpower supply may require partial payment when turnover exceeds a threshold; job worker generally liable for job-work tax. For manpower supply a taxable turnover threshold triggers partial service tax liability and a relevant notification governs chargeability. For job work, the job worker is generally treated as liable for service tax, although where the external operations amount to manufacturing and goods are returned to the principal's factory premises service tax may not apply. Verification of excise registration, the nature of the job-worker's activity, and the status of the manpower service provider is necessary to determine actual liability.