Sale from Jobworkers premises

[Vaidyanathan Venkat Raman]

Our company is located at Bangalore and want to send raw material to a jobworker in Mumbai. At the Jobworker's premises, finished goods shall be sold directly from the Jobworker's premises. In such a situation, the vat law of Maharashtra shall be applicable. While as per CE Act, the Excise duty shall be paid from Bangalore Excise Registration No. My query is to how invoicing shall be made so that Excise duty is paid at Bangalore on sale of finished goods from Mumbai and Maharashtra VAT is levied.

[YAGAY andSUN]

Dear Vaidyanathan,

You would have to take care of following aspects, namely:-

1. Please refer Rule 10 A (i) of the Central Excise Valuation (Determination of Price of Excisable goods) Rules, 2000 (for valuation of goods) for removal of job-worked goods from the premises of Jobworker.
2. You would have to seek registration under MVAT Act, before sending the goods for job work purpose if you want to issue a VAT invoice under MVAT Act. Please check Section 16 of the MVAT Act read with Rule 8, 8A, 9, 10, 11, 12 and Rule 13 in this regard.
3. Take care of way bill under the VAT/CST Laws, if applicable.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Guidance on Invoicing for Excise Duty and VAT Compliance Using Rule 10A(i) for Goods Sent to Job Worker A company in Bangalore plans to send raw materials to a job worker in Mumbai, where finished goods will be sold. The query concerns how to handle invoicing so that excise duty is paid from Bangalore, while Maharashtra VAT is applied. The response advises referring to Rule 10A(i) of the Central Excise Valuation Rules, 2000, for goods removal valuation. It also suggests obtaining registration under the MVAT Act to issue a VAT invoice and checking relevant sections and rules. Additionally, it highlights the importance of managing waybills under VAT/CST laws if applicable.