Job work procedure: principal's tax-free dispatch subject to return time limits; failure to return triggers deemed supply and tax. A registered principal may send inputs or capital goods to job workers tax-free and may route them between job workers; inputs must return within one year and capital goods (excluding certain items) within three years or they are deemed supplied on the date sent. The principal must maintain accounts for goods sent, declare the job worker's premises as an additional place of business to supply from there unless exceptions apply, and account for tax on waste or scrap sold from the job worker's premises if the job worker is registered.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Job work procedure: principal's tax-free dispatch subject to return time limits; failure to return triggers deemed supply and tax.
A registered principal may send inputs or capital goods to job workers tax-free and may route them between job workers; inputs must return within one year and capital goods (excluding certain items) within three years or they are deemed supplied on the date sent. The principal must maintain accounts for goods sent, declare the job worker's premises as an additional place of business to supply from there unless exceptions apply, and account for tax on waste or scrap sold from the job worker's premises if the job worker is registered.
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