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    <title>application of service tax</title>
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    <description>Two forum responses differ on tax characterization. One treats the printing job as subject to Works Contract Tax under local VAT because printer-supplied materials are used and denies service tax applicability. The other relies on the job work exemption: if the principal manufacturer has paid excise duty on the goods, job work is exempt from service tax; if no duty is paid, service tax is payable on the gross value. Credit of duty paid on supplied paper may be taken but its value must be included in the taxable value where service tax applies.</description>
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      <description>Two forum responses differ on tax characterization. One treats the printing job as subject to Works Contract Tax under local VAT because printer-supplied materials are used and denies service tax applicability. The other relies on the job work exemption: if the principal manufacturer has paid excise duty on the goods, job work is exempt from service tax; if no duty is paid, service tax is payable on the gross value. Credit of duty paid on supplied paper may be taken but its value must be included in the taxable value where service tax applies.</description>
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      <law>Service Tax</law>
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