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Service tax on job work on piece rate basis

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..... Dear Sir, We are an Auto Parts Manufacturing company. We are paying excise duty on all our products. We are getting some inhouse job work done on our components on piece rate basis from a contractors. Contractor supplies laour for the job work at our plant and raises bill on piece rate basis. The contractor is chargeing service tax on his bill @ 3.09% and balance is paid by us under reverse c .....

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..... harge method.He claims that it is case of manpower supply. We want to know if we can ask the contractor not to charge service tax as per sl. no.30 of mega exemption notification isuued in June 2012. This is a case of job work and not manpower supply. Please advise. - Reply By Pradeep Khatri - The Reply = Service provided by the contractor does not come under the manpower supply services. If .....

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..... the jobwork is not amounting to manufacture service tax will be applicable. - Reply By Bhuwan Joshi - The Reply = Dear Mr. Pradeep Khatri Thanks, but even if job work is not amounting to maufacture, in view of mega exemption Notification 25/2012 at serial no. 30 service tax is exempt. Am I correct ? - Reply By Pradeep Khatri - The Reply = The Mega Notification 25/2012 in .....

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..... para 30 (c) says that any goods on which appropriate duty is payable by the principal manufacturer; if you are paying duty then no need to pay the service tax. - Reply By RAJESH MANGAL AGRAWAL - The Reply = I am fully agreed with the opinion of Mr Pradip that as per point No 30(c) of the Notification No. 25/2012 ST dated 20.06.2012 exempts Carrying out an intermediate production process as j .....

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..... ob work in relation to any goods on which appropriate duty is payable by the principal manufacturer from the whole of the service tax leviable thereon under section 66B of the said Act . CA Rajesh Mangal Agrawal - Reply By Anirudh Shah - The Reply = whether service tax will be applicable on the job charges charged by job worker on the following process done by him ? He receives rubber pr .....

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..... oduct and other ingredients from the principal manufacture and has done processing and finaly delivering the rubber mix product to the pricipal manufacturer. - Service tax on job work on piece rate basis - Query Started By: - Bhuwan Joshi Dated:- 19-10-2012 Service Tax - Got 5 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management .....

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..... India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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