Job work

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2016 Sir, I am having registered unit in central excise. I want to send material for job work to another Unit (which is also under my proprietorship but presently no activity and no registered assessee in CE) from my this premises and will come again in my present premises. I want to know following : (1) if any permission or intimation is required or only intimation is sufficient. (2) I want to keep 'No registration status" of another unit to avoid zero vale ER1 because i want to start that unit only for Job work of my present registerd unit. Please suggest so that i can decide for long term basis.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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01 April 2016 First of all Form 57 is required for sending goods on job work

& Since the unit in which you are performing Job work comes under SERVICE TAX (Exemption Limit Rs.10.00 Lacs) & not under EXCISE as the same is not manufacturing anything (Exemption Limit Rs.150.00 Lacs), so you need SERVICE TAX

Now Coming to SERVICE TAX, I would like to inform you that it is fully exempted if the final goods on which Job work is performed is EXCISABLE (excise payable on final Product)

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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01 April 2016 Form has been changed i.e. As per Rule 4 (5) (a) of the Cenvat Credit Rules {erstwhile Rule 57 F (4) of the Central Excise Rules, 1944} credit availed inputs can be removed, either as such or after being partially processed, to the premises of job workers for further processing, testing, repair, re-conditioning or any other purpose.

Dayal

Dayal (Expert)
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01 April 2016 Job work will attract service tax only when the final goods sold by the principal are exempt from excise duty.

In your case your unit is registered under excise and assuming you are paying excise duty on the final goods then no service tax is leviable.

No intimation is require and goods can be sent to job worker undr rule 4(5)(a). No challan is specified but ideal to use the erstwhile Annex II challan. Maintain the record for input/output reconciliation and account for scrap generated at jobworker end.

There are several articles on the subject which one needs to go through for better understanding of the records and procedure.

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2016 Thanks Dayal sahab and sethia sahab, Service tax is not a issue because no job work bill is involved as both are same unit. Only it is important that pre-permission is required or not. OR we send intimation also. I repeat that The another unit is not registered. Please advice if any concern. Thanks.