A new start up company wishes to undertake manufacturing activity on job work basis. Kindly clarify whether :
1. Can it be registered as a first stage dealer.
2. If it has to be registered as a manufacturer only, then is it compulsory to have a manufacturing set up i.e plant and machinery etc as it will get manufacturing done on job work basis.
Startup Seeks Clarification on Excise Registration: Manufacturer vs. First-Stage Dealer for Job Work Basis A startup company inquired about registration requirements for manufacturing on a job work basis under Central Excise. It sought clarification on whether it could register as a first-stage dealer or if it must register as a manufacturer, requiring a manufacturing setup. Experts advised that if turnover exceeds 1.50 crores, registration as a manufacturer with some installed machinery is necessary. Additionally, registration is required if duties are paid as a job worker. It was also noted that a factory must have machinery to qualify as such. Another query about GST return filing was addressed, advising a revised filing by a specific deadline. (AI Summary)
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