Direct Delivery from job worker - Valuation

[Kaustubh Karandikar]

XYZ (Supplier as well as Job Worker), supplying the goods to PQR but physically goods will remain with XYZ being a job worker also. PQR will issue a job work challan to XYZ. After manufacturing the finished goods, XYZ to issue a ‘Service Invoice’ to PQR for the job work charges where the value will be only of the job work charges and not the selling price of PQR to his customer. Goods will be directly supplied from XYZ’ premises to the customer of PQR under a Tax Invoice of PQR and on the value at which PQR selling the goods to his customer. Goods will move from XYZ’s premises under the cover of Delivery Challan of XYZ and E – Way Bill and Tax Invoice of PQR. Is this correct?

AI Summary

Direct delivery from job worker: principal's tax invoice and e way bill must accompany goods, no job worker challan required.
Principal-issued tax invoice and corresponding e way bill at the principal's sale value must accompany goods moved directly from the job worker's premises to the principal's customer; no separate challan by the job worker is required when the principal has declared the job worker's premises as an additional place of business, although that declaration is not required where the job worker is subject to the specified registration provision. The job worker should invoice only the job work service charges to the principal.