TaxTMI 
TaxTMI 
Service tax on Jobwork
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....ervice tax on Jobwork<br> Query (Issue) Started By: - GR Satishkumar Dated:- 24-1-2017 Last Reply Date:- 27-1-2017 Service Tax<br>Got 6 Replies<br>Service Tax<br>Dear Experts, Our company engaged in Furniture Manufacturing.Company Registered under Central Excise and Service Tax also. We received material for job work from one company and returned after job work. Company will pay excise duty on f....
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....inished goods. Now my question is on Job work amount we need to charge service tax or not. If no need to charge service tax on job work amount, under which section which is exempted. Please clarify. Reply By Rajagopalan Ranganathan: The Reply: Sir, As per sl. No. 30 (c) of Notification No. 25/2012-ST dated 20.6.2012 as amended "Carrying out an intermediate production process as job work ....
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....in relation to any goods excluding alcoholic liquors for human consumption, on which appropriate duty is payable by the principal manufacturer." Therefore you need not pay any service tax on job work charges collected by you. Reply By YAGAY AND SUN: The Reply: We endorse the view of our learned friend. Reply By KASTURI SETHI: The Reply: I support the views of both experts. Reply By Gane....
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....shan Kalyani: The Reply: The process amounts to manufacture (intermediate product) where duty is to be paid by principal manufacturer hence service tax is not applicable. Reply By Arunachalam siva: The Reply: Fin act 1994, Chp-5, section 66D. Negative list of services, ((f) any process amounting to manufacture or production of goods. Job work process is also amounting to manufacture new distin....
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....ct product. Hence, ST is not application on the subject job work. However, ST is applicable on job work like repair, repair etc Reply By KASTURI SETHI: The Reply: Arunachalam Siva Ji, Yes. You are right. Exemption from ST is available because here process amounts to manufacture (answered or supported by all experts) but the question arises is under which Section exemption is available. There i....
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....s a difference between Serial No. 30 of Notification No.25/12-ST and Section 66 D(f). Section 66 D stands for negative list and sub-section (f) includes 'any process' and Mega Exemption Notification No.25/12-ST includes only ''Intermediate production process'. The query does not talk of intermediate production process. So the party is at liberty to take the benefit of 'any....
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.... process' rather than resorting to 'Intermediate production process' under Mega Exemption Notification. What you want to say exemption from ST is available but route is different. I agree with you. You X-RAYED the replies and Section 66 D and Mega Exemption Notification as well.<br> Discussion Forum - Knowledge Sharing ....