Free inputs supplied by customer

ITC / Input 140 views 3 replies

In our manufacturing process we require a particular part X which is directly supplied by customer's vendor (under bill to ship to model).

 

While selling the finished goods we dont consider the value of X as it is borne by our customer.

What are the implications of this on valuation aspect or any other provision attracted like job work etc.?

Replies (3)
What about the Part of X is Your purchase or not...?
If not then

How to You receive the goods to Your end and which documents?

Part X is purchased by our customer and directly supplied to our factory.

Yes if you fixed that X part to your finished product it's kind of job work. yes you are right that you cannot consider the value of X , as it's not being purchase by you But fixing it to finished product is kind of labour/jobwork ,


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