We have registered with C. Excise as manufacture, whereas along with manufacturing activity we are doing labour job for our associate company. Our associate company also registered with C. Excise and they are cleared material under 214/86 to us and after processing we are raising service tax invoice without charging service tax (since final product is excisable)
since we are registered as manufacture can we do labour job ?
secondly, while processing labour job certain material we have to send for plating which is done from outside in this regard can we use our 214/86 for movement of this material?
Manufacturer Can Use 214/86 Route for Subcontracting and Labor Jobs; Issue Job Work Invoices for External Plating. A company registered with Central Excise as a manufacturer is also performing labor jobs for an associated company, both of which are registered under Central Excise. The company inquires whether it can conduct labor jobs and use the 214/86 route for subcontracting, particularly for sending materials for external plating. Responses confirm that the company can engage in job work and subcontracting while registered as a manufacturer. It is advised to inform the department about these activities and to issue job work invoices instead of service tax invoices. (AI Summary)
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