INVOICE ISSUE FROM JOBWORK PLACE

[SNEHAL SHAH]

SIR,

We are group of companies at gujrat and other state . Due to this our one unit is job work our surat unit product ( WIP ) after that ths material is called FG ( FINISHED GOODS ) & We are planning to so sell ( dispatch ) with excise invoice directly job work unit ( lying at rajasthan ). Due to havy transportation cost we want this type of dicition . We have some confusion , so please clear :

1) Can we directly dispatch this mateiral at job work unit ? if yes Excise duty debited by Job work unit orSuratunit  , Consigner name & consigee name etc.

2) Please brief all procedure .

 

SACHIN

You can clear the Finished Goods which are resulting after the Jobwork at Jobworker's premises.

Please go through the Rule 4 ( 6 ) of Cenvat Credit Rules 2004, where you have to seek a permission from the Jurisdictional Deputy Commissioner for clearance of FG from the Jobworkers premises.

Date of submission: - 10-02-2011 By: - Mangesh Lokre- View Profile

Now quary is that duty liability is jobwork unit or main unit ( supply material for job work ) & is invoice prepare from jobwork unit pl. give clarity

 

SACHIN

AI Summary

Job-work clearance rules: permission required and valuation under Rule 10A governs invoicing and excise value determination.
Permission of the jurisdictional Deputy Commissioner is required to clear finished goods from a job-worker's premises. The job-worker may clear goods on behalf of the principal manufacturer, invoicing consigned to the customer and billing to the principal. Valuation for excisable goods manufactured by a job-worker is governed by Rule 10A: transaction value applies where sales occur at the job-worker's factory or from another place; otherwise relevant valuation rules apply, excluding transportation from the selling premises to the place of delivery.