Job Work - Service Tax Practice Manual / Ready Reckoner - Service Tax

Chapter 30 Job Work (w.e.f 1st July, 2012) Scope of Exempt Service - Notification no. 25/2012 dated 20.06.2012 From 1.7.2012 to 31.5.2015 30. Carrying out an intermediate production process as job work in relation to - (a) agriculture, printing or textile processing; (b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act ,1985 (5 of 1986); (c) any goods on which appropriate duty is payable by the principal manufacturer; or (d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year; Amendment from 1.6.2015 - Not. 06/2015 - Dated 1-3-2015 30. Carrying out an intermediate production process as job work in relation to - (a) agriculture, printing or textile processing (b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of the Central Excise Tariff Act,1985(5of1986) (c ) any goods excluding alcoholic liquor for human consumption on which appropriate duty is payable by the principal manufacturer or (d) processes of electroplating, zinc plating, anodizing, heat treatment, powder coating, painting including spray painting or auto black, during the course of manufacture of parts of cycles or sewing machines upto an aggregate value of taxable service of the specified processes of one hundred and fifty lakh rupees in a financial year subject to the condition that such aggregate value had not exceeded one hundred and fifty lakh rupees during the preceding financial year. Amending notes: Consequent to imposition of Service Tax levy on service by way of manufacture of alcoholic liquor for human consumption, an amendment is being made in the entry at S. No. 30 of notification No. 25/12-ST to exclude carrying out of intermediate production process of alcoholic liquor for human consumption on job work from this entry. Meanings and Definitions: appropriate duty means duty payable on manufacture or production under a Central or a State Act, but shall not include Nil rate of duty or duty wholly exempt. goods means every kind of movable property other than actionable claim and money; and includes securities, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; principal manufacturer means any person who gets goods manufactured or processed on his account from another person, Further see:- Circular No.190/9/2015-Service Tax - Applicability of service tax on the services received by apparel exporters in relation to fabrication of garments Clarification by the Board ( Taxation Guide - Guidance Note - 7 - Exemptions dated 20.06.2012) 7.11.12 What is the tax liability of a person carrying out intermediate production process as job work for his clients? Any process amounting to manufacture or production of goods is in the negative list. If process does not amount to manufacture or production of goods, and is further not covered in clause 30 of the mega notification, the same is liable to service tax.