The present invention's cutting tool coated using the PVD process can cut with high geometrical precision, produce a good machined surface, and cut for a prolonged time. Its substrate is composed of cemented carbide or cermet, has a surface roughness, Ra, of at most 0.3 mum, is structured by hard particles having an average particle diameter of 0.3 to 1.5 mum, and has a cutting part having a sharp positive edge. Its coating is formed over the substrate using the PVD process and comprises an inner layer and an outer layer. The total thickness of the inner and outer layers is at most 2.0 mum. The inner layer comprises (a) at least one of the 4a-, 5a-, 6a-group elements, Al, and Si and (b) at least one of carbon, nitrogen, and oxygen. The outer layer comprises (c) at least one of boron, silicon, carbon, and nitrogen and (d) Ti.