Job Work

This query is : Resolved

Ramkrishna (Querist)
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19 June 2009 Hi to all DE's

a manufauctring unit has got offer for job work ...

1. Can the unit do? if yes then what is procedure uinder Cen. Excise & Commercial tax
2.if the process amounts to manufacturing , what are the legalities
3.if process does not amounts to manufactring, what are the leaglities?

Please answere me itis urgent?
Thanks in anticipation

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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20 June 2009 You have not mentioned the product.
However if the sender of the goods removes the raw materials under Rule 4 (5 (a) or Notification 214/86 you need not bother to pay CE or ST.
However if not then if the process amounts to manufacture you would be liable to CED once the value of clearacnes ( JW charges + Material cost) exceeds Rs. 150 lakhs or if the goods are branded then no exemption.
If not manufacture then possible ST payable.

Ramkrishna

Ramkrishna (Querist)
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22 June 2009 Thanks sir for the clearifcation, but there are few needs :
1. what about Comm. Tax ? under CG Vat Act ?
2. The unit is enegaed in manufacturing for self past 5 years and had crossed SSI Limit 3 years ago, will it be eligible for seperate SSI benefit in case of job work?
REGARDS

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