Turnover calculation
This query is : Resolved
23 January 2014
We are doing a Jobwork for coating on textiles, wherein the textile cloth is supplied by our customer and we use our raw materials to do coating job on the fabric.
How is our company's turnover for excise limit of 150 lacs calculated .
Do we need to add value of textile to our turnover.
If our customer is excisable unit , and they provide us necessary forms (57 form)
How is our company's turnover for excise limit of 150 lacs calculated .
Do we need to add value of textile to our turnover.
If our customer is excisable unit , and they provide us necessary forms (57 form)
26 January 2014
Jobwork is exempt from excise duty and service tax. principal manufacturers are liable to pay duty.
27 January 2014
Thanks for your guidance, , but what happens to the raw material for coating what we use,
how is it calculated in turnover as ref to excise
Do I need to add value of textile to my value of coating material to arrive on turnover calculation in relation to excise 150 lacs turnover limit for ssi
how is it calculated in turnover as ref to excise
Do I need to add value of textile to my value of coating material to arrive on turnover calculation in relation to excise 150 lacs turnover limit for ssi
28 January 2014
Thanks for your guidance, , but what happens to the raw material for coating what we use, how is it calculated in turnover as ref to excise Do I need to add value of textile to my value of coating material to arrive on turnover calculation in relation to excise 150 lacs turnover limit for ssi
02 August 2025
Here’s the clarity you need on **turnover calculation for job work under excise law** in your textile coating job:
---
### Scenario:
* You do **job work (coating) on textiles** supplied by your customer.
* You supply **raw materials** for coating.
* Customer is an excisable unit and gives you **Form 57** (now replaced by e-way bill and other compliances, but principle remains).
* You want to know **whether the value of textiles supplied by the customer is included in your turnover for excise limit calculation (150 lakh SSI limit).**
---
### Key Points:
1. **Job Work under Excise Law:**
* Job work on inputs supplied by the principal manufacturer is **exempt from excise duty** on the principal raw materials.
* The liability to pay excise duty lies on the **principal manufacturer** (your customer), not on you (job worker).
* Your turnover for excise purposes includes only the **value of job work charges** or the **value of materials you supply** (like your coating chemicals).
2. **Value of Textile Supplied by Customer:**
* Since textiles are supplied by the customer, their value is **not included** in your turnover.
* You **do not add the value of the textile cloth** to your turnover.
* Your turnover is based on the **value of job work services rendered** and **materials supplied by you**.
3. **Effect of Form 57:**
* Form 57 (or equivalent documents) are issued by the principal manufacturer to move inputs to job worker without payment of duty.
* This confirms that the goods (textiles) belong to the principal manufacturer and do not form part of your stock or turnover.
4. **Turnover Calculation for SSI Limit:**
* Your turnover = **Value of job work charges + Value of any raw materials you supply** (coating materials).
* Do **not include the value of textiles supplied by the customer**.
---
### Summary:
| Item | Included in Your Turnover? |
| ------------------------------------- | -------------------------- |
| Textile cloth supplied by customer | **No** |
| Coating raw materials supplied by you | **Yes** |
| Job work charges to customer | **Yes** |
---
If you want, I can help draft a detailed note or assist with excise compliance based on your situation. Would you like that?
---
### Scenario:
* You do **job work (coating) on textiles** supplied by your customer.
* You supply **raw materials** for coating.
* Customer is an excisable unit and gives you **Form 57** (now replaced by e-way bill and other compliances, but principle remains).
* You want to know **whether the value of textiles supplied by the customer is included in your turnover for excise limit calculation (150 lakh SSI limit).**
---
### Key Points:
1. **Job Work under Excise Law:**
* Job work on inputs supplied by the principal manufacturer is **exempt from excise duty** on the principal raw materials.
* The liability to pay excise duty lies on the **principal manufacturer** (your customer), not on you (job worker).
* Your turnover for excise purposes includes only the **value of job work charges** or the **value of materials you supply** (like your coating chemicals).
2. **Value of Textile Supplied by Customer:**
* Since textiles are supplied by the customer, their value is **not included** in your turnover.
* You **do not add the value of the textile cloth** to your turnover.
* Your turnover is based on the **value of job work services rendered** and **materials supplied by you**.
3. **Effect of Form 57:**
* Form 57 (or equivalent documents) are issued by the principal manufacturer to move inputs to job worker without payment of duty.
* This confirms that the goods (textiles) belong to the principal manufacturer and do not form part of your stock or turnover.
4. **Turnover Calculation for SSI Limit:**
* Your turnover = **Value of job work charges + Value of any raw materials you supply** (coating materials).
* Do **not include the value of textiles supplied by the customer**.
---
### Summary:
| Item | Included in Your Turnover? |
| ------------------------------------- | -------------------------- |
| Textile cloth supplied by customer | **No** |
| Coating raw materials supplied by you | **Yes** |
| Job work charges to customer | **Yes** |
---
If you want, I can help draft a detailed note or assist with excise compliance based on your situation. Would you like that?
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