Service tax applicability on job work of preparing gold ornaments from pure gold, Service Tax

[SANJEEV GUPTA]

Some speaker in a recent seminar suggested that there is one notification in service tax by which service tax is payable on job work on which excise duty is exempted or nil though it comes within the definition of manufacturing. whether service tax is payable on job work of preparing gold ornaments from pure gold.

Posts / Replies

[Surender Gupta]

I do not agree which the view that where the job work is not falling within the preview of notification no. 8/2005, the same become taxable even if the result of activity undertaken by the job worker is amount to manufacture. Definition of business auxiliary service under clause 65(19) specifically excludes the activity which is amount to manufacture from the ambit of service tax. In such a situation there is no need to refer to a exemption notification.

[Madhukar N Hiregange]

If manufacture takes place as per central excise no servic etax is liable. No service tax since exempted under notification21/2003.