is excise duty is applicable to job work/ labour charges? how and why? what is the rate applicable for the same? and also for what type of job work it is applicable and not applicable?
kapil kumar agrawal (Chartered Accountant ) (169 Points)
31 March 2010is excise duty is applicable to job work/ labour charges? how and why? what is the rate applicable for the same? and also for what type of job work it is applicable and not applicable?
hemant
(article)
(38 Points)
Replied 01 April 2010
hi,
if the process done by job worker amounts to maufacture then exicise duty is payable by job worker. Rule 10A of central excise valuation rules provides for valuation of such transactions. Exemption notification 214/86 is issued in this regard. Also refer case law Ujjagur prints-1988 SC.
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 01 April 2010
AGRRED WITH HEMANT
& A NICE ONE KAPIL
P.Bashista
(Advocate)
(367 Points)
Replied 05 April 2010
Do remember that under exemption notification No. 214/86 the goods should be returned back within 180 days otherwise the jobworker is liable for duty payment.
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