job work

A. Goods send out for job work must be accompanied with a challan

B. Goods send must be received back by the principal within the period mentioned below:

• Inputs, semi-finished or finished goods- 1 year
• Capital Goods- 3 years Of being send out by the principal to the job worker

C. In case where the goods send have not been received back within the period as mentioned above, such goods will be treated as supplied to the job worker by the principal tax will be required to be paid by the principal on such deemed supply.

D. Principal may on his own will

• Receive back the goods after processing from job worker
• Supply to his customers from the place of business of job worker

Under both the situations ITC paid on purchase of goods send on job work will be allowed to the principal.

E. Waste and scrap generated during the initial process, intermediate process, assembly, packing or any other completion process may be sold on payment of tax by:

• Job worker- if he holds a registration
• Principal- if job worker does not hold a registration