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.

AI Summary

Foundry Company Seeks Clarity on Service Tax for Job Work and Manpower Recruitment Under New Rules, Notification No. 15/2012-ST. A foundry company inquired about its service tax obligations for job work and manpower recruitment services under new rules effective from July 1, 2012. Three responses were provided. One advised that if the taxable turnover exceeds Rs 10 lakhs, the company must pay 75% of the service tax for manpower supply, while the job worker is responsible for service tax on job work. Another response requested more details about the company's status and activities. The third stated that the fettling and proof machining process is considered manufacturing, thus exempt from service tax, and referenced Notification No. 15/2012-ST for manpower supply.