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JOB WORK CHALLAN

Solaiappan G (Student) (30 Points)

31 October 2010

Usually we are giving the JOB WORK CHALLAN along with Excisable material while sending the same to job worker for service. As per rule if it is not coming (Challan) return to us , we have to reverse the CENVAT credit amount. Is there any alternative procedure without reversing duty amount..?..

Like can we received any acknowledgement from job worker side..?..

Please suggest..

Solaiappan.G

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9 Replies

S. Banerjee (Practising Cost Accountant. Core area- Central Excise. Service Tax Costing system installation including maintenance of Cost Records and Cost Audit and Management Audit mainly Revenue leakages Audit) (622 Points)
Replied 03 November 2010

Mr. Solaiappan,

If you can establish that the duty paid material has been returned by the Job Worker after performing his activity you can show as returned in Job Worker Register based on the Job worker challan and no need to reverse the Cenvat credit availed on Raw Material/s.

Thanks,

S. Banerjee

Prakash (Professional) (211 Points)
Replied 06 January 2011

I understand that the material is received back within 180 days from the Job Worker. But the challan was not receved from Job Worker.

Not receiving 5-4 challan does not mean that you have to reverse the credit for duty already paid. But there must be something warranting the return og goods after job work activity.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 06 January 2011

Originally posted by : Solaiappan G
	Usually we are giving the JOB WORK CHALLAN along with Excisable material while sending the same to job worker for service. As per rule if it is not coming (Challan) return to us , we have to reverse the CENVAT credit amount. Is there any alternative procedure without reversing duty amount..?.. Like can we received any acknowledgement from job worker side..?.. Please suggest.. Solaiappan.G

make extra copies of challan ( xerox even) and ask the service provider to attach the same with their invoice, this will solve the legal requirement,

job done and return may be endorsed on back of that challan even, under stamp and sign of job worker.

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 07 January 2011

Dear Mr. Solaiappan,

If you have not received challan only(document), you can take another copy and send it to jobworker. the jobworker fill the necessary field and return to you with their delivery challan. That the case you can not reverse the duty.

Otherwise, you have not received the material from job wroker within 180 days from challan date, you have to reverse the cenvat duty of input material, which was taken at the time of inward.

Ankit Baria (TAX PRACTISIONER) (22 Points)
Replied 10 August 2013

Dear Sir,

if we are adding some material in the done job work than we have to lible to charge VAT ,but let me suggest in which amout we have to charge VAT ???

1. material using amount or

2.total value(matrial amount + jobwork Value)

prahlad (accounts manager) (23 Points)
Replied 22 November 2013

Dear SIr,

we are autoparts mfrg.unit in haryana. we are sending material for job work for different diff.operations i.e.cutting,harding,plating etc.& for this every time we are raising a challan everytime.Is there any rule that we raise challan once in a month to the party & rest of time with the material we raise our private challan (non-excisable) if it is possible plz provide rule detail.

prahlad (accounts manager) (23 Points)
Replied 22 November 2013

Dear SIr,

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 22 November 2013

Please refer Notification No. 214/86.

1 Like

prahlad (accounts manager) (23 Points)
Replied 22 November 2013

Dear Sir,

This notf.no.is regarding exemption of goods & can't clear my confusion.We are a mfrg.unit & registered in central excise & My query is that suppose we are sending our material for job work (i.e.for harding/plating) to "A" 10 times a day,than we are issuing 10 times 57F4 challans to "A" on the same day. Now we want to ask that is there any rule agsinst which we send our exciseable material for job work on a non excisable simple challan/cum gate pass & we raise our 57F-4 once in a weak or in a month to the "A", if there plz clear.

Thanks.