TaxTMI 
TaxTMI 
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
16 Aug 2012 
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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. (AI Summary)
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. (AI Summary)