JOB WORK -Payment of service tax and excise duty, Service Tax

[praveenkumar makam]

our company id doing Job work (i.e manufacturing of chemical Product) and send it to customer. The Finished product is liable to pay Excise duty. whether Job work is liable to pay excise duty and service tax. If it it is liable under which section

Posts / Replies

[Brijesh Verma]

Dear Sir, Taxability of any Job-worker has two aspects :

• He undertakes a process which amounts to manufacture under section 2(f) of Central Excise Act 1944.
• He undertakes process classifiable otherwise.

In you case since he is manufacturing chemicals (which you say, is dutiable at final stage) then he is absolutely out of service tax net. As far as liability of excise is concerned, the same depends upon the agreement between the JW and principal manufacturer. If the goods were sent under Notification 214/86 then excise has to be paid by the principal only.

[praveenkumar makam]

 that meansJob work does not attarct service tax

[praveenkumar makam]

Dear varmaji

plese mention the section or rule or notification or case law if any relating to this discussion

Thanking u sir

[Guru Prakash]

ST notification 8/2005 dated 01/03/2005 will clear all your points.