is excise duty is applicable to job work/ labour charges? how and why? what is the rate applicable for the same? and also for what type of job work it is applicable and not applicable?
is excise duty is applicable to job work/ labour charges? how and why? what is the rate applicable for the same? and also for what type of job work it is applicable and not applicable?
hi,
if the process done by job worker amounts to maufacture then exicise duty is payable by job worker. Rule 10A of central excise valuation rules provides for valuation of such transactions. Exemption notification 214/86 is issued in this regard. Also refer case law Ujjagur prints-1988 SC.
AGRRED WITH HEMANT
& A NICE ONE KAPIL
Do remember that under exemption notification No. 214/86 the goods should be returned back within 180 days otherwise the jobworker is liable for duty payment.
I will agree with P. Bashista.
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