F form on job work Done for material send to job worker premises

[AJAY SINGH]

Dear sir,

please confirm me on what value we should issue F form ( as a party from Maharashtra) for the value addition made by the job worker on material send to him for the Job Work, suppose 1 lakh value material send to the job worker to his premises from maharashtra to gujrat , on which gujrat company ( job worker ) has issued f form for the value of material received by him after job work he raise the bill of 45000 for job work charges and send the goods again to maharashtra ( i.e. principal company ) , now after job work material costing reached to 145000/- which is received in Maharashtra my question is whether a party in maharashtra should issue F form for value of materail received by him

a) at ₹ 145000/- ( 100000 original Material cost+ 45000 Labour Cost)

or

b) at ₹ 100000 [ 100000 Origional Material cost+ zero (Labour charges since seperate Bills is raised by the job worker for job work so not required to be added in f form)]

AI Summary

Interstate stock transfer valuation may require Form F reflecting invoice value or only material cost depending on characterization.
Whether Form F must include job work charges hinges on whether the movement is a stock transfer between principal units or a job work return without transfer of property; practitioners differ-some advise Form F reflect combined material plus labour to match accounting and invoices, others advise including only raw material value-administrative practice emphasises that Form F amounts should reconcile with both parties' books and the factual characterisation of the transaction.