JOB WORK OF OVERSEAS COMPANY

[SANJEEV JADHAV]

Dear Sir, one of party in Germany wish to send some material to us for processing / jobwork. We herein in India will make fabitication work and after completion of work, we will send the material to customer in India of overseas company. After completion of our work, we will send invoice of labour charges to German company and German company will issue their invoice directly to their customs. Can we do this ? If yes, what formalities we have to complete regarding customs excise & service tax. 

[YAGAY and SUN]

You may import goods (intended for jobwork) on payment of duty and after doing the jobwork you may get the refund of customs duty under section 75 of the Customs Act, 1962, if the process amounts to manufacture. 

If it doesn't amount to manufacture then, you may import goods under concessional rate of duty for the purpose of re-exporting it.  It would be treated as export of services where no service tax will be payable.

 

[SANJEEV JADHAV]

Dear Pradeepsir, Thanks for the information. Can i get your email ID and contact number.

[YAGAY and SUN]

You can contact me on 09818131923 and send your queries on [email protected] .

AI Summary

Customs duty refund for jobwork: pay duty on import; refund available if process amounts to manufacture. Where operations on imported inputs amount to manufacture, duty paid at import may be refunded under section 75 of the Customs Act upon export of processed goods; if operations do not amount to manufacture, imports can be made at a concessional duty rate for re export. The jobwork charged as labour to an overseas principal can be treated as export of services, attracting no service tax, subject to appropriate import, processing and re export documentation to support refund or concession claims.