Repairs of spares & machineries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2012 If we send the spares or machineries outside the factory for repairs, testing or reconditioning on Returnable Gate Pass, then is it called a job work? if it is called a job work then what process we have to follow? Pls suggest.

CA Amit Jaiswal

CA Amit Jaiswal (Expert)
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20 July 2012 If you are sending these for repair etc, then you must get back these in your premises within the prescribed time.

If not received within this time, then this will be treated as removal and duty will become payable.

Still if you receive this afterwards, then the tax paid earlier will be allowed as credit.