Job work valuation

This query is : Resolved

sekhar (Querist)
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01 January 2010 Dear Sir,

Thank you for writing reply.

Sir i have little confusion regarding job work excise duty valuation. Sir just one example to you.

Ex. we have received one order of job work for 100mt @ 10,000/- per mt for job work charges.
The Principle supplier (Who gives order to us) supplied the material in the name of consignee to us. In the raw material invoice was following details

Qty. Rate A.Value Excise Ed. HSE Sub-total Vat Total Invoice
Duty(8%) cess cess
10.000 45000 4,50,000 36000 720 360 487080 19483 506563

In the above example the landing cost is 50656/- per mt. And Excise received on Rs.450000 so input excise assesble value is 45000/- per MT. Now in which value we have to pay as assessble value for Excise duty valuation. It is Rs.50656+10,000 (job work charges)=60656 Or Rs.45000 + 10000 ( Job work charges).

Kindly give me reply in the preventive excise auditing they had told that landing cost plus job work charges were taken as assessble value. Now here our new office manager was not agreed for that. Please clarify the above.

Thanking you,

With Regards,

V.Raja sekhar
Accountant

SANJAY JAIN

SANJAY JAIN (Expert)
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02 January 2010 What understandable from the query is that you want to know whether the CENVAT credit amount taken by you on the inputs supplied by the principal manufacturer, would form the part of assessable value.

In this regard please note that on after various judicial pronouncements it is settled that CENVAT credit amount would not be added to the assessable value for paying Excise duty by the job worker.

For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).

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