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Job work

Suresh Jain (proprietor) (177 Points)

01 April 2016

Sir, I am having registered unit in central excise. I want to send material for job work to another Unit (which is also under my proprietorship but presently no activity and no registered assessee in CE) from my this premises and will come again in my present premises. I want to know following : (1) if any permission is required or only intimation is sufficient. (2) I want to keep 'No registration status" of another unit to avoid zero vale ER1 because i want to start that unit only for Job work of my present registerd unit. Please suggest so that i can decide for long term basis.

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3 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 02 April 2016

Once you have 1 registered unit and are going to remove for sale only from that unit, you can have other units as job working units who will process and send back. An intimation of the methodlogy used should be intimated to your jurisdictional divn. a/c or d/c.

The goods hsould move under returnable delivery challan and if possible you need to reconcile the sent and recived goods at periodic intervals.

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Suresh Jain (proprietor) (177 Points)
Replied 02 April 2016

Thanks Madhukar Sahab, It mean not any permission is required and only intimation is necessary. Thanks.

Himanshu Manocha (Student CMA) (26 Points)
Replied 31 May 2016

We presently have excise license as an Importer If we change our excise license as a Trader, Can we get the job work done through a local vendor, who will do the value addition in terms of Material as well as Job-work, and return the same material to us? We would like to Invoice the material to customers.

If yes how can we pass Excise duty to buyer?