Excise and service tax implications

CA Nilesh Mahajan (Chartered Accountant) (1609 Points)

13 July 2016  

Hello Everyone,

One of my client doing following activities for his customer. He is not registered under central excise law, however, He take the raw material from customer and send it to the another manufacturer who is regsitered under excise law.

Plz help me out to find out implications of service tax or excise.

  1. Customer(his cutomer's) provides material to the job worker( my client) for manufacturing of goods
  2. Job worker send such material received from Customer to the Manufacturer
  3. Manufacturer undertakes such necessary labour work for manufacturing of such goods and send back said goods to the job worker after raising invoice for said labour work
  4. Further, Job worker receive such goods from manufacturer and send back to the ultimate Customer. Job worker may or may not undertake any further process on said goods. Job worker raises invoice on Ultimate Customer which includes charges of both manufacturer as well as job worker
  5. Further, Customer receives goods from Job worker premises and He will discharge duty on said goods while clearing from his premises