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Value of supply section 15

171 views 2 replies

Vinayak

4 Points Posted on 08 September 2018

A manufacturer supplies his job worker with moulds and dyes required for the job to be done, worth 100. The job worker charges 500 for his service. What shall be the total amount payable by the manufacturer to the job worker (say GST @ 10%)?

Job work charges = 500

Moulds = 100

Value as per sec 15 = 600

GST(600*10%) = 60

Total Amount payable by Manufacturer to job worker (A) 500+60=560 or (B) 600+60=660 ?

Replies (2)

Rohit Tibrewal

Student

3193 Points Posted on 08 September 2018

A, valuation rule says material supplied by manufacturer is not considering as consideration amount. If you purchase the same from manufacturer then you need to charge as ler B.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 08 September 2018

As per query, the Mould is supplied by you to Jobworker for Jobwork

Total amount payable by Principal to Jobworker
500 + 50 = 550/- & jobworker will raise the tax invoive only for his job work done.

Note : when jobworker send back the mould to manufacturer he will raise delivery challan . on that delivery challan he will mention the cost of mould + jobwork charges . ie (B) 600+60=660
Job work