https://www.taxtmi.com/forum/issue?id=201 Service tax applies to the labour component of jobwork after distinguishing it from materials; materials incorporated are treated as transferred goods and subject to VAT while processes amounting to manufacture fall under excise rather than service tax. Separate invoicing for job charges and materials should match purchase orders. Composite pricing may restrict bifurcation but material-cost deduction under the applicable notification can isolate the taxable service portion. Subcontracting where no material is added typically avoids service tax or VAT on materials. Jobworkers should monitor excise-registration thresholds and may use the prescribed challan for customer-supplied materials. en-us Tue, 06 Jun 2006 09:02:46 +0530 Thu, 23 Jan 2025 15:59:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=201 Service tax applies to the labour component of jobwork after distinguishing it from materials; materials incorporated are treated as transferred goods and subject to VAT while processes amounting to manufacture fall under excise rather than service tax. Separate invoicing for job charges and materials should match purchase orders. Composite pricing may restrict bifurcation but material-cost deduction under the applicable notification can isolate the taxable service portion. Subcontracting where no material is added typically avoids service tax or VAT on materials. Jobworkers should monitor excise-registration thresholds and may use the prescribed challan for customer-supplied materials. Discussion-Forum Service Tax Tue, 06 Jun 2006 09:02:46 +0530 https://www.taxtmi.com/forum/issue?id=201