F4 ( 5 ) rule

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2012 we received material from other source for conversion, material will be input for developing another material, final output will be more then what we received for conversion, how we close the F4?

U S Sharma

U S Sharma (Expert)
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30 August 2012 seems your process is not catagorized under job work but manufacture, here you may get liable for whole duty on goods value.

keep invoicing with care, and return their goods on F$(5) challan, stating the processing done, and same goods returned to them after processing,

you have to make invoice for your goods sold to them separately, charge excise and vat.

combination of both may generate a unique 3rd product, but you have no right to declare that as job worker, but your liability is limited to process the inputs sent to you, not to convert the inputs to final products ( under documents)

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2012 thanks for inputs, like to clarify that, we are not developing final product with their material, the unique 3rd product will be input for vendor to develop machine castings, and, is their possible to generate F4 (5) closure and sales invoice ( as you advised above ) in a single invoice transaction?

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