Inhouse Job Work v/s Service Tax, Service Tax

[Ashok Chopra]

Respected Forum,

we are 100% EOU and claiming Service Tax as Unavailed Cenvat. Some unregistered job workers are providing inhouse service to us more than Rs. 10.00 lac in a year.  Are they required to be registered as Service Tax Provider and charge service tax on their bill and are we required to pay service tax under Reverse Charge and claim the service tax paid as Unavailed Cenvat?

pls advice

Posts / Replies

[Joginder Pal]

The EOU is in India and the inhouse service given is in India, hence the Reverse Charge Machanism is not applicable in this case. Further the people providing you services are not job worker but are service providers to you. In case these inhouse services are required for the purpose of manufacture of goods for export or for export of service, your unit can claim refund under the provision of Rule 5 of Cenvat Credit Rule, 2004