TaxTMI 
TaxTMI 
Serviec tax on jobwork
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....erviec tax on jobwork<br> Query (Issue) Started By: - Swapneswar muduli Dated:- 16-11-2016 Last Reply Date:- 19-11-2016 Service Tax<br>Got 6 Replies<br>Service Tax<br>Dear Sir, We are a job worker and we are not registered under central excise we received material from Excisable unit we doing only job work and further we send these material to another job worker for any other process. and after r....
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....eceiving these material we send back to principal manufacturer and the principal manufacturer clearance the material with payment of appropriate duty. My query is the third party job worker billed us and he charge the vat as well as service tax both in his bill. Is this charged in the invoice both service tax and vat is correct or not ? Regards Swapneswar Reply By Rajagopalan Ranganathan: The....
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.... Reply: Sir, Since you send already partially processed inputs supplied by the principal manufacturer to another job worker to carry out certain other process, it does not involve any sale. Therefore no vat is payable. Since your principal manufacturer pays duty on the final products, as per Sl. No. 30 (c) of Notification No. 25/2012-ST dated 20.6.2012 as amended "any goods excluding alcoh....
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....olic liquors for human consumption, on which appropriate duty is payable by the principal manufacturer is exempted from payment of service tax. Reply By Ganeshan Kalyani: The Reply: The consumables used during processing job is deemed to be sold which attract VAT . Reply By Swapneswar muduli: The Reply: Dear Sir's, Thank you for your reply but if the third party job worker is adding the ....
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....material in his process than is it attract work contract service or not ? Or it attract the VAT or not ? Regards Swapneswar Muduli Reply By Rajagopalan Ranganathan: The Reply: Sir, In my opinion the transaction between principal manufacturer and first job worker and between first job worker and the second job worker do not amount to sale of goods and hence vat is not applicable. Only when a t....
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....ransformer machinery etc is sent to job worker for the purpose of repair and if the job worker replaced certain parts while carrying out repairs in that case it can be treated that replaced parts are sold and will attract vat. Reply By Ganeshan Kalyani: The Reply: Whether the series of Job workers' premises are registered as additional place of business in the VAT certificate of principal ma....
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....nufacturer . if yes then no VAT is applicable. Reply By Swapneswar muduli: The Reply: Dear Sir, Thanks for your reply. In the above case the first job worker is not registered in Central Excise a swell as service tax. So when the first job worker send the material to second job worker they send through Normal Returnable Delivery Challan. The second job worker doing job work with adding some ma....
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....terial also than send back these material to first job worker. The second job worker charge the VAT on 40% that material portion and Charge Service tax on full amount. So query is this transaction is correct or not ? Whether this transaction also exempt from service tax under Notification No-25/2012. Regards Swapneswar muduli<br> Discussion Forum - Knowledge Sharing ....