Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Service Tax This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

Service Tax Laibility, Service Tax

Issue Id: - 111450
Dated: 1-2-2017
By:- kamal negi

Service Tax Laibility


  • Contents

Hello Sir This is Kamal Negi my query is following:-

1) We are a excisable unit situated in sonepat (HR), can we do job work for a unit situated in Exempted Zone like Uttarakhand & Himanchal and what will be role for Service Tax.

2) We are not registered in Excise but registered with service tax, can we do job work of a excisable unit giving us material on terms of 62% recovery of 100% material at conversion charge of ₹ 8/- Per Kg. We are receiving material from franchise of excisable unit and sending material after processing to another job worker on behalf of excisable unit for further process. Please clear service tax role and if any other laibility.

Kindly reply sir.

Rgds

K.S.Negi

Posts / Replies

Showing Replies 1 to 6 of 6 Records

Page: 1


1 Dated: 1-2-2017
By:- Ganeshan Kalyani

In my view you can do job work for the unit at exemption area. If the process amounts to manufacture then no service tax otherwise yes.


2 Dated: 2-2-2017
By:- KASTURI SETHI

Sh.Negi Ji,

I agree with Sh.Ganeshan Kalyani, an expert. I further add as under:-

If finished excisable goods are dutiable but exempted by virtue of Notification (may be area based exemption or value based exemption i.e.SSI) and process amounts to manufacture, you will have to pay CE duty on job-worked goods as exemption from CE duty under Notification No.214/86-CE as amended from time to time, is conditional. Exemption on job-worked goods is available if principal manufacturer pays the duty payable thereon. If principal manufacturer does not pay duty on finished products by virtue of areas based exemption, duty has to be paid by job-worker on the said goods up to the processes undertaken by him(job-worker). There are also other conditions mentioned in the above notification. Duty must be paid on finished goods or duty should be paid on job-worked goods (semi-finished/intermediate goods). So you will have to get yourself registered with Central Excise Department for manufacture and clearance of job-worked goods on payment of duty.


3 Dated: 2-2-2017
By:- YAGAY AND SUN

We endorse the views of the experts.


4 Dated: 2-2-2017
By:- KASTURI SETHI

M/s.YAGAY AND SUN,

THANK YOU, DEAR SIRS.


5 Dated: 3-2-2017
By:- Ganeshan Kalyani

Thanks Sri Kasturi Sir for detailed reply. It enriched my knowledge. Thanks.


6 Dated: 6-2-2017
By:- MARIAPPAN GOVINDARAJAN

I also endorse the views of Shri Sethi.


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates