Job work by 3rd party
This query is : Resolved
CA Kapil Verma
(Querist)
20 February 2016
Company A is a principal manufacturer which has given a job work to company B. Company B receives material from company A, processes the material and returns the processed Material to company A.
In the process it charges a processing fee to company A. Company A has given undertaking under excise notification 214/86-CE to the B's jurisdictional AC/DC that they would pay excise during the final removal of goods from A's factory.So company B doesn't pay excise on job work.
Now company B wants to further sub-contract this job work to company C under which company C would collect materiel from company B which in turn collects it from company A, process the material and sends it back to company B.
Company B further process and sends it back to company A. In the process, company C charges a fee from company B.
1. Now whether Company C need to pay duty ?
2.or can get undertaking under excise notification 214/86-CE from Company B's.
Thanks.
In the process it charges a processing fee to company A. Company A has given undertaking under excise notification 214/86-CE to the B's jurisdictional AC/DC that they would pay excise during the final removal of goods from A's factory.So company B doesn't pay excise on job work.
Now company B wants to further sub-contract this job work to company C under which company C would collect materiel from company B which in turn collects it from company A, process the material and sends it back to company B.
Company B further process and sends it back to company A. In the process, company C charges a fee from company B.
1. Now whether Company C need to pay duty ?
2.or can get undertaking under excise notification 214/86-CE from Company B's.
Thanks.
Arun Kumar Singh
(Expert)
20 February 2016
No need to pay duty in intermediate products are process under job work if duty has been paid on final product.
CA Kapil Verma
(Querist)
23 February 2016
so company C need to get Undertaking from Company B as per Nott. 2014/86
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
