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TMI BlogSERVICE TAX NOT BE APPLIED ON JOB WORK MATERAIL BEING RECEIVE ON 57f4X X X X Extracts X X X X X X X X Extracts X X X X ..... SERVICE TAX NOT BE APPLIED ON JOB WORK MATERAIL BEING RECEIVE ON 57f4 X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply: You cannot intermingle Central Excise duty and Service Tax. Both are entirely different concepts. See Rule 10 A of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Job work was exempted because its cost was included/added in the manufacture of dutiable final product (notification no.214/86-CE as amended from time to time read with Rule 57 F(4) of Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Rules, 1944. If job-work (process) amounts to manufacture, no Service Tax is leviable. Either Central Excise duty or Service Tax is/was to be charged and not both.If the process of job-work does not amount to manufacture, it will be treated as service and it falls in the category of Business Auxiliary Service because job-worker works for and on behalf of the principal. Cost of job-work + prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it will be added to the transaction value of final product. [(19) "business auxiliary service" means any service in relation to, - (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or [ * * * * ] (iii) any customer care service provided on behalf of the client; o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (iv) procurement of goods or services, which are inputs for the client; or [Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client;] [(v) production or processing of goods for, or on behalf of, the client;] (vi) provision of service on behalf of the client; or ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, [but does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include any activity that amounts to manufacture of excisable goods].
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