Job work

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Kulbhushan (Querist)
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18 August 2012 Dear Sir,

Can a manufacturer send material direct, from supplier to job worker as per excise rule, if yes what is procedure follo by manufacturer and job worker.

U S Sharma

U S Sharma (Expert)
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20 August 2012 mfr will take entry in RG23A- Part1, but wil not take credit in part 2,
will issue challan to job worker for the materials sent direct, mentioning the ref no of supplier challan
after physical receipt of 100% materials in factory of manufacturer back from job worker, he will take credit on the basis of the original ( transporter copy) excise invoice of the supplier.,

Kulbhushan

Kulbhushan (Querist)
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20 August 2012 Dear Sir,

Thanks! but i have further query that without receiving of material in factory can mfg take entry in Part-1.

U S Sharma

U S Sharma (Expert)
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20 August 2012 yes, and immediately he will issue challans for job worker, coz without making entry in RG-1 goods are not confirmed of his ownership.

U S Sharma

U S Sharma (Expert)
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20 August 2012 even if he does not like to make entry in RG-1, then challan should be made wihout ref of RG-1 part1, mentioning only supplier's details.

taking entry in part 1 safeguards the assesee that they were aware of the transaction and its not a fake entry or mere book entry.

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