subcontracting process

[Prasad Kulkarni]

HI,

can anyone pl suggest solution for above process.

i have sent material for subcontracting process in which raw material goes out to subcontractor end , he then use some pins, screws & some parts from his end., i receive subassembly from him. which challan will be useful for it.

[Mahir S]

Generally job work challans are used for job work purpose.

However, in your case, you may opt for private challans or clear and receive back on Returnable gate passes.

The procedure above shall mostly depend on the quantum and value of the job work carried out and whether finished goods are excisable or otherwise.

[Prasad Kulkarni]

HI Mihir,

can you suggest which challan number is used for above process? .

my client send raw material to his subcontractor, against this subcontractor uses pins , screws, some parts and convert raw material into subassembly. so what procedure does he needs to follow from the point of excise.

[Mahir S]

Sir,

Though you have used the term sub contracting process, however the process is nothing but job work process and it is therefore advisable to follow procedure prescribed under noti no. 214/86 CE.

The above procedure is required if you are registered under central excise and also making duty payment on finished goods manufactured in your factory premises.

You may issue job work challans for issuance of raw materials and for receipt back of subassembly material from the subcontractor if you are registered under central excise, else you may use Ordinary challans books which are available in the market.

AI Summary

Job work challans required for subcontracted processing when registered under central excise and duty is payable on finished goods.
Use of job work challans is appropriate when raw materials are sent to a subcontractor who adds parts and returns subassemblies, provided the principal is registered under central excise and duty is payable on the finished goods. The notification procedure requires issuing job work challans for dispatch and for receipt of processed material; if not registered or goods are not excisable, ordinary or private challans or returnable gate passes may be used instead.