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Job work

pintu ( Executive) (174 Points)

24 October 2013

WE HAD RECEIVED A CAPITAL EQUIPMENT FOR REPAIRING. NOW WE ARE SENDING THE SAME AFTER REPAIR AFTER 15 YEARS. WHAT ARE THE TAXES TO BE CHARGED FROM THE PARYT. I.E.VAT /SERVICE TAX/EXCISE ETC.

WE HAVE ALSO USED OUR OWN MATERIAL ON WHCIH CENVAT WAS TAKEN BY US

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5 Replies

CA Subhash Bhaskar (Practicing CA) (291 Points)
Replied 24 October 2013

It is a work contract so u have to charge both vat and service tax as per prescribed percentage.

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satya (Executive Excise) (1839 Points)
Replied 25 October 2013

Dear Pintu,

Is it really 15 years,

Pl confirm.

satya (Executive Excise) (1839 Points)
Replied 25 October 2013

Dear Pintu,

Pl study this answer provided by Mr.Anandan

"Since you are a manufacture and under excise, you can sent your semi-fininshed goods for processing under 57F(4) challan i.e. 4.5 challan. Its a Challan for movement of Inputs \ Partially processed Inputs/capital goods under cenvat rule 4(5)(a). Its prepared in triplicate. Original copy is pink colour copy, Duplicate copy will be green colour and the Triplicate copy will be white copy. The origianal and the duplicate will sent to the jobworker along with the materials. At the time of closure of challan the pink copy will be kept by the job worker and the green challan will the sent to you along with the duly processed material and labour bill. 4.5 challan ,has two parts. Part I you will fill and Part II details will be filled by the jobworker after completion of his work duly stamped and signed. The said 4.5 challan should be closed by the jobworker within 180 days, else you will have to pay the excise duty on the declared value of the material in the challan along with interest. You wll have to maintain ANNEXURE IV register wherein the details of the 4.5 challan prepared in your factory and the details of the goods received after closure of 4.5 challan is maintained. Hope the matter is little clear to you.

Regards Anandan.s "

pintu ( Executive) (174 Points)
Replied 27 October 2013

yes we are sending the same equipment after 15 years as the party plant was shut down and now they have started the plant. is there any rule for extension of job work which the part can apply to their range supritendent. and we can ask them to submitt a copy of that letter and we can clear the eqipment as job work only

pintu ( Executive) (174 Points)
Replied 27 October 2013

as we are just job worker. we are not liable for any excise duty as the goods are return back to the principal manufacturer. we will pay service tax as applicable. if i am not wrong the supplier is liable to pay duty and not the job worker. again the process not amounts to manufacture.