Dear Expert,
One of party has offered to supply finisihed goods using several raw materials out of which one raw material will be supplied by the party to manufacturer. Is it nature of job work or supply of goods? kindly explain
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JOB WORK OR SUPPLY OF GOODS
Replies (1)
To determine whether the arrangement is a job work or a supply of goods, let's analyze the scenario:
Key Factors 1. *Finished Goods*: The party will supply finished goods, indicating a supply of goods.
2. *Raw Materials*: The party will use several raw materials, but one raw material will be supplied by the party to the manufacturer.
3. *Manufacturer's Role*: The manufacturer will use the raw materials, including the one supplied by the party, to produce the finished goods.
Job Work Characteristics For an arrangement to be considered a job work:
1. The goods must be owned by the principal (the party).
2. The principal must supply the goods to the job worker (the manufacturer
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