Job work

This query is : Resolved

Manan Shah (Querist)
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19 November 2011 One of my client is purchasing the raw material on behalf of one its client, process it and send it to the client & he issue the invoice of full amount that is with material and job work.. Is the same amounts to job work?

At present he is not paying the excise duty on same considering the same as job work...whether the same is correct???

U S Sharma

U S Sharma (Expert)
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19 November 2011 it amounts to manufacture, excise duty is applicable

CA. RENZ .V. RAJAN

CA. RENZ .V. RAJAN (Expert)
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19 November 2011 The regulations relating to job work are covered by the often referred notification no 214/86 dated 25.03.1986 as amended from time to time. The provisions relating to the movement of goods and the permissions required etc are covered here. The question of excisability comes in when the event of manufacture happens while doing the job work. If in the process of doing job work an excisable good comes into existence then relevant duty would be payable at appropriate rates even though the final product shipped out by the ultimate manufacturer is not subject to excise duty.

so excise duty is applicable.

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