Job work charges

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seshadev sahoo (Querist)
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05 December 2013 Sir,

We are manufacturer of Fencing material. We have another branch(manufacturing unit) at other state. We have common balance sheet maintained. my question is if we are doing job-work for our another unit, is it necessary to charge some amount as processing charges from them or not ?

Please help me.

Thanks & Regards,

Arun Kumar Singh

Arun Kumar Singh (Expert)
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05 December 2013 you can charge for processing work but any other duty will not be applicable like service tax.

seshadev sahoo

seshadev sahoo (Querist)
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05 December 2013 Thanks Sir,

But during last year transaction we are not claim the same from them.

Is is any problem create now ? Is it necessary for inter unit.

Regards,

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ADITYA

ADITYA (Expert)
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06 December 2013 MR SAHOO

AS ANOTHER UNIT IS YOUR OWN HAVING COMMON BALANCE SHEET, YOU NEED NOT TO CHARGE ANY JOB WORK CHARGES FOR GETTING THE JOB WORK DONE.

AS FAR AS APPLICABILITY OF EXCISE DUTY, THE EXACT PROCESS OF JOB WORK TO BE CONSIDERED WHETHER OR NOT IT AMOUNTS TO MANUFACTURE.

seshadev sahoo

seshadev sahoo (Querist)
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06 December 2013 thanks alot.