JOB WORK FROM REGISTERED MFR. FOR REGISTERED MFR.

[Guest]

We are in SSI unit manufacturing insulated copper winding wires. we are registered with excise and enjoing modvat facilities.we intend to do job work for another registered manufacturer, so my query as follow:-

1. what formalities/intimation we have to do with excise department

2.what papers we require from principal supplier (whose material we job work)

3.what papers we have to attach while returning material after job work.

4.should we raise job work invoice (without excise duty) in continuation/running bill book.

5.Any separate record/ accounting to be maintain ?

Thanks

[YAGAY andSUN]

Dear Sir,

You can intimate to the department about that you will conduct job work. Principal supplier can sent the goods under Rule 16A, 16B and 16C of the Cenvat credit credit Rules, or under Rule 4 (5) a or under Notification No. 214/1986-CE on challan. If job work does not amount to manufacture then you can charge service tax but if job worked goods used by the principal manufacturer in manufacturing of dutiable goods then service tax would not be charged by you.. Challan should be closed and you can issuance a bill/invoice for your job work charges.

You may also record this transaction either in your computer system or keep manual register. Input output ratio should be taken care of .

If required, waybill under VAT act may be accompanied with the goods. Some State VAT Department ask for Form F under CST Act. So please get clarification from your VAT Consultant.

Regards,

YAGAY and SUN

[KASTURI SETHI]

I support the views of the experts. Comprehensive reply indeed.

AI Summary

Job work compliance: excise challan movement, invoice for job work, recordkeeping and potential VAT documentation required. Job work between registered manufacturers requires intimation to excise authorities, movement under excise challan provisions with challan closure on return, issuance of an invoice for job work charges, and maintenance of records (manual or electronic) with attention to input-output ratios for Cenvat compliance; service tax applies only where the job work constitutes a taxable service and additional VAT/CST transit documentation may be needed.