Job work -samples

Dear Sir,

our cleint is a manufacturer of Hand tools as well as now they do some job work in the basis of received the raw materials after complete the job work that the finished goods will send back to supplier which is giv en job work. In the mean while that the finished goods send to export. Now in this sititution, is our job work is appliable to any tax?

 

Replies (3)

Dear K. Raja,

                  first check with the goods that your are producing which taxes are applicable to your profile of goods.

secondly, check whether your goods are excisable or not.If your goods are excisable then you will have to pay excise duty on both self production and also the goods given for job work. 

 

Regards,

CA Vidhi Dedhia,QLI 

If goods are exported then no need to pay duty. 

Dear Mr. Raja

You are receving goods from your supplier and returned to them after your process completed under jobwork procedure.  In this transaction you need not to pay any duty.  In this case you can receive amount from your suppler for your jobwork.  This is come under service tax and have to pay serive tax at the time of create service.

regards

RP Ananthakumar

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