JOB Work ITC

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Vinothkumar C

Accountant

78 Points Posted on 24 January 2020

We have Sent 5 material for Job Work through Our DC.

If We have received 2 Materials by Invoice. (So Balance 3 Materials Under Process), Can I take ITC for the above 2 materials or I have to wait invoice for balance 3 Material. (Is it write or Wrong) Pls Suggest Valid Proof.

Regards,

C.Vinothkumar

Replies (6)

Quick Summary

This discussion clarifies when businesses can claim Input Tax Credit (ITC) for materials sent for job work. The general consensus is that ITC can be claimed as soon as an invoice is received for returned goods, even if other materials sent under the same Delivery Challan (DC) are still pending at the job worker's premises. It's advised to claim ITC based on received invoices rather than waiting for the entire DC quantity to be returned.

Roshni

Studwnt

730 Points Posted on 24 January 2020

You can take ITC based on invoice. currently you rec'd invoice of 2 material of this ITC can be claimed. further if you are directly sending goods to job worker then you can claim ITC when it reaches job worker directly.

Vinothkumar C

Accountant

78 Points Posted on 24 January 2020

You can take ITC based on invoice. currently you rec'd invoice of 2 material of this ITC can be claimed - OK

further if you are directly sending goods to job worker then you can claim ITC when it reaches job worker directly - pls explain with example.

Roshni

Studwnt

730 Points Posted on 24 January 2020

As you mentioned you have sent 5 material already to job worker ...suppose those goods directly reach job worker rather than coming to your place and then to job worker...in that case when good reach job worker place you can claim ITC.

Vinothkumar C

Accountant

78 Points Posted on 24 January 2020

Thanks for your valuable suggestion Roshni. (I Think It is for 3 parties involved )

Our doubt is only for two parties involved

We (A) have sent 5 Nos for job work to a party (B) by our DC

Party B sent only 2 Nos after completing the job work vide their Invoice.(3 Nos pending)

In this case:-

Shall we take ITC for 2 Nos or I have to wait for balance 3 Nos which is pending as per our DC.

Shall we take ITC for above 2 Nos even DC quantity is pending at B (i.e 3 Nos under process for 3 months at job worker place ) or I have to wait all the quantities of that Particular DC quantity received to take ITC ?

Is there any rule or notification to claim ITC after all the DC quantities received ?

Regards,

C.Vinothkumar

Roshni

Studwnt

730 Points Posted on 24 January 2020

I answered your query based on you sending goods to job worker. ie A to B

but you are asking it for getting back goods after completion of job work(in this case B to A).well if this is the situation then you should have claimed all of ITC when you purchased material and not when you receive it back from job work .