TaxTMI 
TaxTMI 
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.
SERVICE TAX ON JOB WORK & MAN POWER SERVICE.
25 Jul 2012 
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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. (AI Summary)
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. (AI Summary)