Job worker getting job done from another job worker

[Murari Agrawal]

Dear Experts,

We are receiving raw materials for processing on Job Work & return to manufacturer. Some times we do not have capacity to process within time and we intend to send the raw materials to another job worker for getting the job done. Can we do so and if yes, what should be the formality.

Thanks.

AI Summary

Jobwork sub-contracting: sending inputs to another job worker permitted; goods must return within prescribed period and assess service tax risk.
The law does not expressly prohibit sending inputs received for jobwork to another job worker; removals should be on a challan and goods returned to the employing job worker within the prescribed period. If the sub jobworker's processing results in inputs being returned and delivered to the manufacturer for use in final manufacture, the work is treated as continuing jobwork, though a sub contractor may impose service tax and registration or liability issues may arise.