Excise Jobwork

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Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2011 Dear sir,

We are subsidiary company of German company who are manufacturer of Flavors and Fragrance. We have set up branch recently in ahmedabad. We will import flavors and Fragrance from our Parent company and will resale to local players who use our products as raw material or traders. I need to know about excise documentation and formalities for effecting our sales.

We have registered with central excise department under dealer category.

(1)We have planned to hire warehouse in Bangalore and Chennai also for supply to local customer.
- Do we need to take registration certificate for chennai and Bangalore ?
-Do we need to register with central excise department under existing registration or new ?
- Do we need to apply for fresh ?

(2) we plan to do multiple process , the details are under:

(a)we will import and resale as it is.
(b)we will import in 25 kgs drum and repack in 1 kgs or 2 kgs drum from job worker.
(c)we will import and send to jobworker for blending.
(d) we will import and send to jobworker for dilution (for some process)

My question is as under

- How to remove material from our warehouse to jobworker? (Challan /Invoice )

- Do we charge excise duty or sales tax on this transaction?

- How do they remove material from their factory to our factory?
- Do they charge excise duty & Sales Tax ?
- Do they mention their name as Manufacturer?

(3) what are register to be maintained? (4) do we maintain part I and Part II for RG23?

Please help me.

Regards

Senthil

U S Sharma

U S Sharma (Expert)

14 July 2011 a dealer is not entitled to get the jobs done by job worker, to get such activities done you have to have a manufacturing registration, as the process described under (2)b, (2)c and 2(d) amounts to manufacture and excise duty leviable.

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