Job work

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mukesh (Querist)
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30 October 2011 sir,
please tell me if a manufacturing co done job work will it include in its turnover or not. ( part of turnover or not ) explain.

Thanks & Regd

Mukesh

CMA Nishad Patkar

CMA Nishad Patkar (Expert)
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30 October 2011 Dear Mukesh

First of all it is a part of your turnover and is shown separately under the Head Sales in Schedule annexed to P&L.

Finally, Processing or Job Work is an incidental and ancillary activity of a manufacturer. In case of pure mfg. you have to procure the Materials directly from the suppliers on your own cost whereas in case of job work you have to process the Material supplied by Client and return back same to the client. Under both the cases you have to spend the utility and Ohs expenditure. The only difference of Material Cost.