Job work by 3rd party
This query is : Resolved
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.
20 February 2016
No need to pay duty in intermediate products are process under job work if duty has been paid on final product.
23 February 2016
so company C need to get Undertaking from Company B as per Nott. 2014/86
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