Job Work issue

[Guest]

I have a question. I m register with excise and if my unit is small and need a another premises. I want to start manufacturing in that unit on job work basis. The material from parent co will go and after the job work will come back to parent co. Duty will be paid by parent co on sale price which will include the job work charges.
Please suggest how to go about it

[KASTURI SETHI]

Procedure is laid down in Notification No.214/86-CEas amended.

[Mahir S]

Yes, you have to follow the job work procedure as mentioned above and take precautions for issue/receipt of goods and valuation of goods at the time of clearance of goods from parent factory.

[Guest]

Dear Prem JI,

You can sent the goods under cenvat credit Rule 4(5)a with Annexure-II Challan for Job work. After complete the job work you received the material on Challan and same challan will be closed after received the material.

For Sending the material and received the material you need to maintained Register-V in appropriate format.

But the time limit for return the Goods is 180 Days. If your Goods not returned with in 180 Days from your job worker. You need to reverse the proportionate Cenvat Credit on these Inputs.

Regards

Swapneswar

[Ashish Gupta]

You can also directly clear material from there under 4(6) under invoice by following the rules by taking permission from AC/DC of Central Excise.

AI Summary

Job work procedure requires sending inputs under cenvat challan with return obligations and credit reversal if not returned. Job work movement from a parent factory to a job worker is governed by Notification No.214/86-CE and cenvat credit rules: inputs can be sent under Rule 4(5)(a) with an Annexure II challan, receipts recorded against the challan, and Register V maintained; a time limit for return applies and non return requires reversal of proportionate cenvat credit. Duty is payable by the parent on clearance value including job work charges, and materials may alternatively be cleared directly from the job worker under Rule 4(6) with officer permission.