Job work

This query is : Resolved

rahul gupta (Querist)
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11 June 2014 i am running a business of manufacturing of hand tools. i want to know if some party ask me to manufacture for them and in that case they provide me with a raw material, will that be consider as a job work or not? and also if they dont provide raw material i.e i purchase raw material myself what will be the nature of the transaction. and its accounting treatment.
another query related to this is that, at the time of making a bill am i going to charge vat and excise (as mine is a excisable unit) or serivce tax? plzzz clearify..
thank you

Shah Viral Pramodbhai

Shah Viral Pramodbhai (Expert)
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11 June 2014 When you receive raw materials from party, and they exercise control over the transaction, then he is manufacturer. He is liable for excise duty. And Vice-versa rule prevails.

rahul gupta

rahul gupta (Querist)
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12 June 2014 thank you for the reply. but my query is that when v consider a transaction as a job work or a sale?

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