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Excise on Job Work

Nikhil Gupta (Deputy Manager Accounts) (25 Points)

10 May 2007

Hi Friends,

Is excise duty is applicable on job work if yes then how, bcoz as per my knowledge job work is the best way to save excise duty bcoz here i m not manufacturing any new product and whom i m giving the material for job work is a small manufacturer.

Pls suggest me about the provision regarding excise duty.

my id is nikhilashok_gupta @ yahoo.co.in

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15 Replies

Ashish Sharma (Chartered Accountant) (57 Points)
Replied 10 May 2007

The following notifcation exempts excise duty on Job work. Plz refer to it for clarification
214/86-C.E., dated 25-3-1986. Exemption to specified items if manufactured in a factory as a job work and used in the manufacture of final products.

It requires a declaration to be filed by principal manufacturer that he would pay the excise duty on final product. So, either jpb worker or principal mfr is required to pay excise duty

Thanks & Regards,

Ashish

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(Guest)

excise duty credit on materials returned from job workers after 180days

Sunder (22 Points)
Replied 17 July 2007

What will be the liability if declaration not filed and late filing

(Guest)

whether i have to pay central excise duty of 16%, if i have done job work and my net turnover is below 25 lakhs.

(Guest)

excies duty paid with honesty than central gov.do good work for poor people

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(Guest)

I am a finance person in govt of india

mahendra Kumar Agarwal (CompleteAccountSolution) (272 Points)
Replied 22 November 2008

Hi Friends,

Excise duty is applicable on job work if A manufacturer(Excise able person) doing Job work for SEZ So Excise Duty is applicable on job work.

(Guest)

Hi Friends,

Excise duty is applicable on job work if A manufacturer(Excise able person) doing Job work for SEZ So Excise Duty is applicable on job work.

(Guest)

I wanna do a job in Central Exise..so plz suggest me which exam i will have to qualify to get a job in this sector and what should be the minimum qualification.

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 07 January 2009

Well, this is another thread gone haywire.

Central Excise duty is on manufacturer. If the process underaken by a job worker amounts to manufacture- duty is payable. The manufacturer is required to pay the duty. In this case job worker is the manufacturer. However, to help small job worker, such duty liability has been shifted to the principal manufacturer under botification 214/86 as well as Cenvat Credit Rules. Both the procudure requires that after job work the material must return to the principal manufacturer, where it wil be used in further manufature of final products on which duty will be paid.

It must be understood that primary liability of duty payment is on the person doing manufacturing (in this case it may be job worker), so it is necessary in the interest of job worker to ensure that the procedures are scrpulously followed, so that no future liability arises.

It is further to be noted that now job work, which does not amount to manufacture attarcts service tax, under the head of business auxiliary services.

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mahendra Kumar Agarwal (CompleteAccountSolution) (272 Points)
Replied 08 January 2009

Originally posted by :Rajesh Kumar
"	Well, this is another thread gone haywire. Central Excise duty is on manufacturer. If the process underaken by a job worker amounts to manufacture- duty is payable. The manufacturer is required to pay the duty. In this case job worker is the manufacturer. However, to help small job worker, such duty liability has been shifted to the principal manufacturer under botification 214/86 as well as Cenvat Credit Rules. Both the procudure requires that after job work the material must return to the principal manufacturer, where it wil be used in further manufature of final products on which duty will be paid. It must be understood that primary liability of duty payment is on the person doing manufacturing (in this case it may be job worker), so it is necessary in the interest of job worker to ensure that the procedures are scrpulously followed, so that no future liability arises. It is further to be noted that now job work, which does not amount to manufacture attarcts service tax, under the head of business auxiliary services.	"

vipin (prop) (24 Points)
Replied 08 March 2009

hi,

i am dealer in delhi not registered with central excise has purchased hr steel coil on non excise bill sent it to pipe manufature in punjab on dilevery challan stating actual value of material for making pipes on job work and to be taken back to delhi is excise will be charged on[coversion value] job work,or on whole value of material or it will be nill