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Applicable of Serviec tax on jobwork.

Central Excise - Started By: - Swapneswar muduli - Dated:- 18-10-2015 Last Replied Date:- 20-10-2015 - Dear Sir, We are a manufacturer and we send the partial processed inputs to our job worker under Cenvat credit Rule 4 (5)(a). the job worker has added some his won material like color for paint our material. (In short we send the plastic plates and job worker paint this plastic article with different colors as per aou requirement ans return to us ) In this above case if the job worker had regis .....

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t in respect of services received from job worker the service tax is to be paid on reverse charge mechanism and does not indicate the ratio in which the said service tax is paid. In respect of job work, if the job work done by the job worker amounts to 'manufacture' under Section 2 (f) of Central Excise Act, 1944, then it is not chargeable to service tax. As your narration you are sending plastic plates to job worker for painting with various colours. This does not in any way bring any c .....

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is not complete and without which such plates cannot be differentiated and differently identified, then such process shall amount to manufacture. However, it being a job work process therefore excise duty shall not be applicable thereon.Hence, whether such process falls under excise or service tax has be decided by you based on the complete process of manufacture of plates. - Reply By Swapneswar muduli - The Reply = Dear Sir, Thanks for your reply, But as per notification No-25/2012 if Job work .....

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to a job worker under Notification No. 214/86-CE for further processing testing etc, then the job worker can return to the principal without payment of duty such inputs/partially processed inputs after subjecting the same to required process. When this Notification was issued there was not service tax. However, since service tax is leviable on process undertaken, if it does not amount to manufacture service tax payable. However, according to Sl. No. 30 (c) of Notification No. 25/2012-ST dated 20 .....

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