TaxTMI 
TaxTMI 
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
Job Work issue
20 Jan 2016 
4 Replies 
2996 Views Asked by
Guest 
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. (AI Summary)
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. (AI Summary)