Job Work

Querist : Anonymous (Querist) 26 October 2010 This query is : Resolved
A company does jobwork at the premises of its client by sending workers and receives Jobwork charges.What are the implications of Excise/Service Tax in this regard?

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R.Ramachandran (Expert) 26 October 2010
Please clarify whether the job worker has taken a separate central excise registration as a 'manufacturer' in the premises of its client?

Please also indicate whether there is separate demarcation of the area for performing the 'job work'?

Only after knowing the above facts it will be possible to give a view on your query.

Querist : Anonymous (Querist) 27 October 2010
Yes, the jobworker has a separate CE Registration as a Manufacturer.

There is no separate area demarcated for jobwork.

R.Ramachandran (Expert) 27 October 2010
Do you mean to say that the job worker has CE Registration as a manufacturer at a different place and NOT AT THE PLACE WHERE HE WILL BE CARRYING OUT THE JOB WORK I.E. IN THE PREMISES OF THE CLIENT.
If he has not registered in the premises of the client [separate demarcated place] as a Manufacturer who will discharge the excise duties for the product being manufactured at the client's premises? If it is going to be the client, then all that the alleged job worker does is supplying manpower to the client and charging for the same. It will attract service tax under 'manpower supply'.

s.subramanian (Expert) 29 October 2010
I fully support the above view.

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