Job worker

[Jasbir Uppal]

My respected professionals

That my client doing the business as job worker and all material dies & moulds provided by principal as per section 143

That the job work charges charged by the job worker as per the labour quantum involve in job and principal pay accordingly section 143.

1. That as per section 143 the applicant firm has return the balance stock of raw material at the end of financial year and principal issued the martial to job workers in next financial year. Some job work orders had on hand as on 1^st April which were completed in this financial year and the quantity on hand as on 31^st March were completed in next financial year after receiving the material. There is only job work order in hand.
2. That the rate of article fixed with the principle according to job work.

My quarry is if any stork of stock found in the premises of job worker the liability of tax paid on principal not on job worker because he was doing only job work of only this principal.

Pl. give your valuable opinion

J S Uppal

Tax Conslutant

AI Summary

Job work tax liability remains with the principal; job worker liable only for GST on his service charges.
Under Section 143, goods sent for job work remain the principal's property and tax liability; the job worker is liable only for GST on his job work charges. Stocks found at the job worker's premises do not shift tax responsibility. Completion of job work across financial years does not change the allocation of tax liability, and the principal must comply with prescribed return and record-keeping requirements while the job worker accounts for service GST only.