LABOUR JOB ACTIVITY

[SURYAKANT MITHBAVKAR]

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?

[ashish chaudhary]

Yes, you can undertake job work activity also while being registered as manufacturer. Further, you can follow 214/86 route for subcontracting. It is suggested to intimate department regarding the activities undertaken.

[Mahir S]

yes sir, you can carry out job work and also sub contracting , as discussed above.

However, it is advisable to raise Job work invoices instead of service tax invoices .

AI Summary

Job work by registered manufacturer permitted; use bonded transfer route for subcontracting and invoice as job work, notify department. A manufacturer registered under excise may perform job work for an associate and subcontract processing; the bonded transfer route may be used for movement of input and semi-processed materials to subcontractors and back. The combined activities should be intimated to the department, and transactions should be invoiced as job work rather than as service tax invoices where the end product is excisable.