TMI BlogSERVICE TAX NOT BE APPLIED ON JOB WORK MATERAIL BEING RECEIVE ON 57f4X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, on which notification or rule it is cleared that job worker should not add service tax on materail being issued on 57F4 for processing on returnable basis - Reply By KASTURI SETHI - The Reply = You cannot intermingle Central Excise duty and Service Tax. Both are entirely different concepts. See Rule 10 A of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000 . Job work was exempted because its cost was included/added in the manufacture of dutiable final product ( notification no.214/86-CE as amended from time to time read with Rule 57 F(4) of Central Excise Rules, 1944. If job-work (process) amounts to manufacture, no Service Tax is leviable. Either Central Excise duty or Service Tax is/was to be charged and not both.If the process of job-work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not amount to manufacture, it will be treated as service and it falls in the category of Business Auxiliary Service because job-worker works for and on behalf of the principal. Cost of job-work + profit will be added to the transaction value of final product. [(19) business auxiliary service means any service in relation to, - (i) promotion or marketing or sale of goods produced or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or [ * * * * ] (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or services, which are inputs for the client; or [Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, inputs mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s all goods or services intended for use by the client;] [(v) production or processing of goods for, or on behalf of, the client;] (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, [but does not include any activity that amounts to manufacture of excisable goods]. Kindly elaborate your query in order to enable the experts to give comprehensive reply. - SERVICE TAX NOT BE APPLIED ON JO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B WORK MATERAIL BEING RECEIVE ON 57f4 - Query Started By: - ace nitriders Dated:- 3-9-2019 Service Tax - Got 1 Reply - 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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