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

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..... Service received inhouse on piece rate basis Job Work or Manpowe Supply
Query (Issue) Started By: - Bhuwan Joshi Dated:- 14-8-2012 Last Reply Date:- 14-8-2012 Service Tax
Got 1 Reply
Service .....

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..... Tax
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. Buf .....

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..... fing 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. Sinc .....

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..... e the 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 wan .....

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..... ts 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 cat .....

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..... agory ( 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 .....

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..... 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 the p .....

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..... rovisions of CCR
Discussion Forum - Knowledge Sharing .....

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