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Service received inhouse on piece rate basis Job Work or Manpowe Supply

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..... We are manufacturers of Auto Parts. We have been receiving services of Buffing and fettling from manpower suppliers in our factory itself, means material does not move outside our factory. Buffing and fettling are regarded as job work services which are exempt under notification no. 25/2012 as we are paying excise duty on final product. The Job worker raises bill on piece rate basis. Since th .....

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..... e job worker supplies manpower in our factory he had taken registration under Manpower Services and had been deposing service tax under Manpower catagory. W.e.f. 1st July the job worker still wants to charge service tax under Manpower catagaory on the ground that manpower is effectively controlled by our supervisors. Please reply the following quries. 1- Is raising of bill under Manpower catag .....

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..... ory ( under reverse charge) is in order ? 2- If we take CENVAT credit of such service tax, will it be in order in view of exempted status of service under notification no. 25/2012. Regards - Reply By JAMES PG - The Reply = Since you are paying excise duty on final products, intermediate process undertaken will not be teated as exempted service and hence Cenvat credit is eligible subject to t .....

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..... he provisions of CCR - Service received inhouse on piece rate basis Job Work or Manpowe Supply - Query Started By: - Bhuwan Joshi Dated:- 14-8-2012 Service Tax - Got 1 Reply - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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