Subcontracting

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Dear All,

I want to know if its possible to do subcontracting between my own units. I.e lets say i have 02 plants in karnataka bangalore region and i am sending some raw material from one unit to other where some processing has to be done and the material will get changed to a different material which has to come back again to parent plant.

What will be the suitable process for sending the material

1.Through subcontracting

2.Through stock transfer from plant A to plant B for raw materials and then again a stock transfer for the finished material from plant B to plant A.

Kindly note that my plant A is excisable whereas B is non excisable plant.

If both process can be followed what will be the implication from excise point of view.

Regards

Bhushan

Replies (1)

you can send under "job work" procedure, excise liability will remain with "principal" always.


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