Job work by eou for another eou

[arbs sarma]

Good evening sirs

Can EOU send goods to another EOU for job work.

If yes can the job worker-eou utilise its own inputs(imported duty free/domestically procured) during job work process and include the inputs cost in service charges charged to another eou.

After completion of job work whether the goods are to be returned back or can they be directly exported from job worker-eou premises.

whether the same provisions relating to job work in gst are applicable in the present case or there any other provisions in FTP or customs.

[KASTURI SETHI]

Sh.Arbs Sarma Ji,

Query-wise reply is as under :-

(i) Yes. Goods can be sent to another EOU.

(ii) There is no such restriction.

(iiii) Follow the procedure laid down under Para no.6.21(c) of HBP 2015-20 which is as follows :-

Para 6.21 (c) of FTP 2015-20

(c) Export of finished goods from job worker’s premises may be permitted, provided such premises are registered with Central Excise/GST authorities. Where job worker is SEZ / EOU / EHTP / STP / BTP unit, export may be effected either from job worker’s premises or from premises of unit. Export of such products from job worker’s premises shall not be allowed through third parties as provided in FTP.

(iv) As in para (iii) above.

If any doubt, post your query here again.

[arbs sarma]

Dear Kasturi Seth Ji

Thanks for your reply. I have on query.

Pl clarify whether Para 6.21 (c) (Sub contracting) in HBP is applicable to EOU gems and jewellery units or to any other goods (Formulation products) for getting job work done.

[KASTURI SETHI]

Job-work from EOU to another EOU is for all products. It is very much clear from the following :

Relevant extract of FTP 2015-20

6.14 Sub-Contracting

[YAGAY andSUN]

Please refer sub para ii of Para 6.21a of the HBP Vol-1 in this regard.

AI Summary

EOU job work: EOU may send goods to another EOU; inputs may be used and export from registered job worker premises permitted. An EOU may send goods to another EOU for job work; the job-worker EOU may use its own inputs (imported duty free or domestically procured) and include such costs in service charges. Export of finished goods from job worker premises is permitted if those premises are registered with indirect tax authorities; exports from job worker units that are SEZ/EOU/EHTP/STP/BTP may be effected from either premises, but export through third parties is not allowed. FTP subcontracting provisions apply to all goods, including gems and jewellery.