Conversion of iron wire into nails and job work

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2014 dear sir/mam,

1)whether conversion of iron wire into nails amount to manufacturing .

2) if one party purchases iron wire and gives to another party for conversion into nails whether job work involved there. please explain the concept of job work.and how it can be accounted in both the party books.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 December 2014 1. conversion of iron wire into nails amount to manufacturing.

2. Yes it is a job work.
The activity undertaken by small industries to complete the process on raw material/semi-finished goods as desired by principal manufacturer is known as "Job Work".

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