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Job work and molding charges and reakted tax issues

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..... Job work and molding charges and reakted tax issues
Query (Issue) Started By: - Suvarna Kumar Dated:- 7-11-2013 Last Reply Date:- 12-11-2013 Central Excise
Got 4 Replies
Central Excise
We are 100 percent EOU and if we sent PP mats to Job work for rubber packing . In this case Job worker using their own backing compund .The backing compund materilas is not an duty releated materials an .....

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..... d they billing us molding charges PP mats . In this case central excise have any objection ? PP mats is 100 percent EOu products and Job worker make this as rubber molded PP mats . Job worker need to pay service tax or any other charges for this work. Please clarify Reply By PAWAN KUMAR: The Reply: As per my view, service tax would be charged as you have told that eou unit sent the raw materi .....

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..... al to job worker and the job worker processed the raw material by using their own material. The service which the job worker did, falls under Works Contract Service, where transfer of property in goods involved. Therefore service tax would be leviable. Reply By Suvarna Kumar: The Reply: Dear Sir , . We are sending Semi finished Poly proplylne mats for rubber backing . We are sening only poly pr .....

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..... opylne mats . The Job worker using thier own rubber for backing this product . In this case .How to Billing and Job worker face any taxes . Is thier any rules to purchase the rubber compund from job worker and hand over them for backing . What are the real procedure for this type of Job work Reply By PAWAN KUMAR: The Reply: Dear Sir, As per my understanding there are two options, 1. the job wo .....

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..... rker sell the material to you and you in turn provide the same to use into your job work. In such case, all the materials will be in your possession and job worker will only charge the job work charges to you for which he can claim exemption under mega exemption Notification No. 25/2012-ST S.no.30 (c). Reply By Suvarna Kumar: The Reply: Dear Sir In this case if we purchase the raw materails fro .....

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..... m Job worker . Raw materails name Rubber compound. Can you please explain the taxes they need to mention in rubber compund sales to us . As per mega exemption Notification No. 25/2012-ST S.no.30 (c)..Where this details mentioned. Also we are waiting to hear from 2nd option .
Discussion Forum - Knowledge Sharing .....

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