Job Work from Sister Concern, Service Tax

[Mridul Sethi]

Sir,

We 2 Manufacturing Sister Concerns having units in Punjab & Haryana with same name. If we do job work from each other, then are we liable to pay service tax or not. Also if we are liable to pay service tax, then threshold limit of service tax will be considered or not, if the manufacturing unit is LTU.

Posts / Replies

[Pradeep Khatri]

If you are paying duty on final products then there is no requirement to pay the service tax as mentioned in the Mega Notification.

[vijay kumar]

If after job work, the finished goods suffer excise duty at the other end, there is no need to pay service tax by either unit. You may follow the procedure prescribed under Nofn.214/86-CE. If not, liability under service tax arises. As regards threshold limit, if the company is same or LTU, the threshold limit applies only once, in terms of Notification no..33/2012-ST.