Subcontracting

Bhushan (Consultant) (28 Points)

03 March 2011  

Dear All,

I want to know if its possible to do subcontracting between my own units. I.e lets say i have 02 plants in karnataka bangalore region and i am sending some raw material from one unit to other where some processing has to be done and the material will get changed to a different material which has to come back again to parent plant.

What will be the suitable process for sending the material

1.Through subcontracting

2.Through stock transfer from plant A to plant B for raw materials and then again a stock transfer for the finished material from plant B to plant A.

Kindly note that my plant A is excisable whereas B is non excisable plant.

If both process can be followed what will be the implication from excise point of view.

Regards

Bhushan