28 April 2011
The value of 2 products for which it does job work would be the selling price of the supplier of raw material. If the same is for consumption further and not for sale then ABC would have to find out what is the valkue of RM and add the JW charges _ 125 Lakhs and on the amount in excess of 150 L pay the CED. This is assuming that the previous years value of clearances did not exceed 400 l. If exceeded then the liability would be for the whole.