TaxTMI 
TaxTMI 
Cenvat Credit of Service Tax paid on Job Work charges by job worker
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....Notice No. 07/2016 Subject : Cenvat Credit of Service Tax paid on Job Work charges by job worker - reg. Representations have been received from the Gurgaon Industrial Association that many ancillary units are carrying out the activities of painting, powder coating and electroplating of parts/components on job work basis for the principal manufacturers. They are of the understanding that the ....
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....ll not pay' enumerated in the said provision (section 5A (1A) of the Central Excise Act) specifically denotes that it is the mandatory requirement on the manufacturer of such excisable goods not to pay the duty of excise on such goods in respect of which an exemption under Section 5A(1A) has been granted absolutely. Such a mandatory requirement of 'not to pay' the duty of excise on goods exempted ....
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....goods on payment of Central Excise duty then exemption of service tax would be available to the job worker and this exemption notification is mandatory and the service tax is exempted on such job works. However, if in terms of notification no.25/2012-ST dated 20.06.2012, service tax is being charged on an intermediate process (not amounting to manufacture) by such a job worker, credit of such serv....
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....t. In this regard, it is intimated that representations were received from the Gurgaon Industrial Association in this Commissionerate that many ancillary units are carrying out the activities of painting, powder coating and electroplating of parts/components on job work basis for the principal manufacturers. They are of the understanding that the services provided by them are intermediate produ....