job work taxation

[chetan kumar]

I saw.a purchase bill of job work of auto mobile manufactoring comp. Of punjab . There was mentioned that only 60 percent of portion was taxable in VAT. . Entry was s below

party name. dr.

To cenvat (on full value)

To Vat input(on 60 percen value)

To surcharge on vat input

To job work(60 percent)

To jobwork taxfree(40 percent )

. Even in some entries excise, vat and st is chrged at once. Pls clear my doubt..

[YAGAY andSUN]

Already replied. Please check query no. 111609.

AI Summary

Job work taxation: apportionment of VAT input and CENVAT treatment where part of job work is treated as tax exempt. The issue concerns allocation of taxability and input credits in job work: CENVAT shown on full value while VAT input is claimed on a portion, with part of job work treated as tax free, and surcharge and multiple levies (excise, VAT, service tax) recorded together.