TMI BlogService tax on job work within factory premisesX X X X Extracts X X X X X X X X Extracts X X X X ..... One of our contractors engaged in manufacturing of intermediate products where machines, materials, power, space and spares are provided by us within the factory premises on piece meal basis under job work. The contractor provide their own labour who remains under their own superintendence and control on receipt of a consideration on piece-meal basis. The job is purely excisable goods. We remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ves goods certain further processing like machining, painting, inspection etc. on payment of Central Excise duty. Let us know whether service tax is payable for such activities by the contractors/jobworker. - Reply By KASTURI SETHI - The Reply = Relevant extract of An Education Guide issued by CBEC in 2012 4.6.2 Would service tax be leviable on processes on which Central Excise Duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is leviable under the Central Excise Act, 1944 but are otherwise exempted? No. If Central Excise duty is leviable on a particular process, as the same amounts to manufacture, then such process would be covered in the negative list even if there is a central excise duty exemption for such process. However if central excise duty is wrongly paid on a certain process which does not amount to ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture, with or without an intended benefit, it will not save the process on this ground. If process amounts to manufacture on which duty of Central Excise is leviable under Section 3 of Central Excise Act, 1944 is covered under Section 66 D(f). See also Notification No.7/17-ST dated 1.2.17 which is applicable from the date of enactment. (still not enacted). Relevant extract is he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re:- 2. In paragraph 2, after clause (y), the following clause shall be inserted with effect from the date on which the Finance Bill, 2017 receives assent of the President, namely: - (ya) process amounting to manufacture or production of goods means a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944 (1 of 1944), or the Medicinal and Toi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... let Preparation (Excise Duties) Act, 1955(16 of 1955) or any process amounting to manufacture of opium, Indian hemp and other narcotic drugs and narcotics on which duties of excise are leviable under any State Act for the time being in force; . - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sri Kasturi Sir. If the process amounts to manufacture then service tax is not appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable. Otherwise yes. - Reply By YAGAY AND SUN - The Reply = Since intermediate goods are being used in the dutiable finished goods then there is no need to pay the service tax. - Reply By Ganeshan Kalyani - The Reply = Whether the intermediate goods is used to manufacture dutiable goods or exempt goods the service tax is not applicable mere because the activity of manufacturing is in negati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve list of service. - Reply By KASTURI SETHI - The Reply = Though the essence of all replies is same but style of expression is different. I support the views dated 21.2.17 of Sh.Ganeshan Kalyani, Sir. This reflects the difference between the terms, Negative List and Exempted Services . From the date of enactment it will be shifted to the list of exempted services under Mega Exemption Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No.25/12-ST as amended. - Service tax on job work within factory premises - Query Started By: - NAUSHERAWAN SM Dated:- 20-2-2017 Service Tax - Got 5 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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