waste & scrap supplied by Job Worker

[Vinod Maheswari]

I have a query regarding section 143(5) which says

"Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered"

Now if Job worker is registered and if he is paying some consideration to principal for that waste and scrap than whether Principal is exempt from raising invoice to Job worker and can ask Job worker to supply waster and scrap and pay relevant tax according to section 143(5).(Its means it will be supply in Job worker account).

If answer is Yes than what about be treatment of consideration received by principal for such waste and scrap as section 7 says consideration received will be treated as supply .

Thanx

AI Summary

Job worker supply of waste and scrap permits registered job workers to supply directly but invoice obligations may still apply.
Section 143(5) permits waste and scrap generated during job work to be supplied directly by a registered job worker from his place of business on payment of tax, or by the principal if the job worker is unregistered; circular guidance applies the general job-work removal principles mutatis mutandis, so invoice and tax treatment remain relevant where the principal receives consideration for such waste and scrap.