Job Work effects on ER!

[Kirit Desai]

Dear Sir,

We are the manufacture of PP Woven Fabric. but now a day we are also receiving order for Laminated fabric. we don't have laminating facility so that we have sent unlaminated fabric on job work. Process of Job : Unlaminated fabric to Laminated Fabric. we are also sending LD the material used in lamination. Example : Unlaminated Fabric 1000 Kgs. LDPE : 100 Kgs. We will received laminated fabric approx. 1090 Kgs. and excess LDPE 10 Kgs. return. My Query is how to reduce my unlaminated fabric in my stock and how to show the laminated fabric received after job in excise return ER1.

AI Summary

Manufacturer Seeks Guidance on Accounting for Job Work in Excise Returns: Handling Process Loss in ER1 Reporting A manufacturer of PP woven fabric is seeking advice on accounting for job work in their excise returns. They send unlaminated fabric for lamination, including LDPE for the process, and receive back laminated fabric with some excess LDPE. The query concerns how to adjust the stock of unlaminated fabric and report the laminated fabric in the ER1 excise return. The response suggests recording the difference as process loss.