Job work

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Girish (Querist)
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15 September 2012 one of our client is purchasing material from local vendor, The local vendor from where the goods is purchased is manufacturing goods on the tools supplied by my client. The vendor buys material of his own and manufactures the part and supplies to my client. I would like to know whether these arrangements is to considered as a part of JOBWORK. If yes how to treat the supply of MOULD being sent to VENDOR which is my client's property and is used for manufacture certain tools or part for final product.

U S Sharma

U S Sharma (Expert)
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16 September 2012 the vendor is charging you only for their goods, not for the moulds and dies,
so the vendor is manufacturer, and to make it customized as per the design of the client he needs dies/ moulds which is made available to vendor during the process time only by the client.