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Job Work invoicing

Rishi (Director) (25 Points)

13 November 2010

I am new to excise all things and still had not implemented it in my organization.

I had performed a job work for a company which is already a excisable company.

1. Do I have to charge any tax from him If I am doing his job work.

2. What should be format (what things to be included) for invoice I had to give them

3. What if I perform the job work for company which is not excisable.

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3 Replies

virender kumar (ASSISTANT MANAGER-ACCOUNTS & FINANCE) (45 Points)
Replied 15 November 2010

IF U R RUNNING AN EXCISEABLE UNIT SAY YOUR PRINCIPLE MANUFACTURER TO SUBMIT A DECLARATION UNDER NOTIFICATION NO. 214/86 AT YOUR DIVISION THAT HE WILL PAY THE DUTY ON FINAL PRODUCTS.

CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 16 November 2010

It is to be noted that there no duty liability on the part of the job worker only in case it is proved that there is no manufacture in the premises of the job worker. Excise liability will arise if goods are manufactured during the job work. As correctly pointed out, notification no 214/86-CE will give clarity on the subject. Also refer rule 2(n) of the Cenvat credit rules

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 17 November 2010

You are a job party for that company and you will raise a Labour charge invoice to the company

In this case, you are a service provider, You should pay service tax only. For that you can registered as a service provider then create invoice with service tax and file stax returns.