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Jobwork

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(Querist)
25 September 2012 Sir,
What will be the Jobwork cost (i.e.Processing Charges) when processor add up the raw material to the finished product he is processing?

is duty payable on the cost of raw material he is using to complete the process?

is duty payable on the cost of raw material he is using to complete the process but sold to the principle manufacturer whose product is exempted from duty?
Best Regards,

For Dhoot Transmission Pvt.Ltd.
Avinash V.Kulkarni
Manager-Excise(Corp.)
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Kishor Darole

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Kishor Darole (Expert)
27 September 2012 Dear Mr. Avinash,

The raw material consumed by the job-worker to process your finish product needs to pay Excise duty from him. Job-worker will raise Two Invoices 1) Job-work charges 2) His own Tax Invoice under Rule 11, paying the duty on the material consumed. you can very well avail the credit of the same.

Also,Job-worker can charge either WCT or Service Tax but not both.

Hope, this clarifies your query.

Regards
Kishor Darole
Profile Image

Kishor Darole

Profile Image

Kishor Darole (Expert)
27 September 2012 Dear Mr. Avinash,

The raw material consumed by the job-worker to process your finish product needs to pay Excise duty from him. Job-worker will raise Two Invoices 1) Job-work charges 2) His own Tax Invoice under Rule 11, paying the duty on the material consumed. you can very well avail the credit of the same.

Also,Job-worker can charge either WCT or Service Tax but not both.

Hope, this clarifies your query.

Regards
Kishor Darole
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