Job Work

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Ramkrishna (Querist)

19 June 2009 Hi to all DE's

a manufauctring unit has got offer for job work ...

1. Can the unit do? if yes then what is procedure uinder Cen. Excise & Commercial tax
2.if the process amounts to manufacturing , what are the legalities
3.if process does not amounts to manufactring, what are the leaglities?

Please answere me itis urgent?
Thanks in anticipation

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

20 June 2009 You have not mentioned the product.
However if the sender of the goods removes the raw materials under Rule 4 (5 (a) or Notification 214/86 you need not bother to pay CE or ST.
However if not then if the process amounts to manufacture you would be liable to CED once the value of clearacnes ( JW charges + Material cost) exceeds Rs. 150 lakhs or if the goods are branded then no exemption.
If not manufacture then possible ST payable.

Ramkrishna

Ramkrishna (Querist)

22 June 2009 Thanks sir for the clearifcation, but there are few needs :
1. what about Comm. Tax ? under CG Vat Act ?
2. The unit is enegaed in manufacturing for self past 5 years and had crossed SSI Limit 3 years ago, will it be eligible for seperate SSI benefit in case of job work?
REGARDS

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