Service Tax liability on job work, Service Tax

[Harish Lath]

a RMC (Ready Mix Concrete) plant is doing job work of another private limited company. All the raw materials required i.e. Cement, Sand, Stone Chips and Ad mixture are supplied by the principal company and paying job work charges for supplying ready mix concrete with out charging any excise duty. My question is that whether there is any Service Tax liability on the job work charges received from the principal supplier?

Posts / Replies

[Radha Arun]

Why isn't excise duty being paid on the RMC?

[Naveed S]

If central excise duty is paid by the Principal company at the time of clearance of the finished goods after receipt from the job worker, then there is no service tax liability for such job charges.