Job work valuation: recommend amending manufacturer definition and valuation rules to use principal's transaction value. The Sub Group recommends legislative and rules level changes to close valuation gaps for goods manufactured by job workers: amend Section 2(f) to include both job worker and principal manufacturer within the definition of manufacturer; expand Section 4(3)(b) to treat principal and job worker as related persons; and insert a new Rule 8A in the Valuation Rules providing that where goods manufactured for another are not sold at removal, valuation shall be the transaction value at the place/time of first sale or, if consumed, 110% of cost of production.
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Job work valuation: recommend amending manufacturer definition and valuation rules to use principal's transaction value.
The Sub Group recommends legislative and rules level changes to close valuation gaps for goods manufactured by job workers: amend Section 2(f) to include both job worker and principal manufacturer within the definition of manufacturer; expand Section 4(3)(b) to treat principal and job worker as related persons; and insert a new Rule 8A in the Valuation Rules providing that where goods manufactured for another are not sold at removal, valuation shall be the transaction value at the place/time of first sale or, if consumed, 110% of cost of production.
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