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.
JOB WORK OF OVERSEAS COMPANY
SANJEEV JADHAV
Inquiry on Processing Imported Goods: Duty Refunds and Export Service Tax Exemption Explained for Non-Manufacturing Processes An individual in India inquired about the feasibility and formalities of processing materials sent by a German company for job work. The processed materials would be sent to a customer in India, with labor charges invoiced to the German company. A respondent advised that goods can be imported on payment of duty, with potential duty refunds under specific conditions. If the process doesn't constitute manufacturing, goods can be imported at a concessional rate for re-export, classifying it as an export service exempt from service tax. The inquirer requested further contact details for more information. (AI Summary)