TaxTMI 
TaxTMI 
Sub-Contracting
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....the Special Economic Zone for sub-contracting shall be brought back into Unit within one hundred and twenty days or within such period as may be extended by the Specified Officer for reasons to be recorded in writing for grant of such extension; ^3[Provided that in case of a gems and jewellery unit, the finished goods requiring further processing or semi-finished goods, including precious metals, taken outside the Special Economic Zone for sub-contracting by the unit shall be brought back into the unit within twenty-eight days.] ^8[Provided further that in case of gems and jewellery unit, the semi-finished goods, precious metals and any other raw material (excluding diamonds or precious and semi-precious stones or lab grow....
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....n any financial year, the consolidated value of the sub-contracted part of production of a unit and of the sub-contracted production process of a unit shall not exceed the total value of goods cleared by the unit either for exports or for sale in Domestic Tariff Area in the immediately preceding financial year: Provided that a unit, sub-contracting part of the production or production process to other unit in the same Special Economic Zone shall not require the permission of the Specified Officer provided that both the supplying and receiving units shall maintain proper account of the goods involved in the sub-contracting: Provided further that in case of gems and jewellery unit, in any financial year, the consolidated val....
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.... are lying in the sub-contractor's premises and are being used for production of goods on account of the Unit; (i) raw materials, components and consumables excluding fuel may be sent along with these goods, or separately. (2) The Development Commissioner may also permit subcontracting of part of the production process abroad and in such cases, the goods may be exported from the sub-contractor's premises abroad subject to following conditions, namely:- (a) sub-contracting charges shall be declared in the export declaration forms and invoices and other related documents; (b) the export proceeds shall be fully repatriated in favour of the Unit. ^6[(c) in case of sub-contracting abroad, the goods ....
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....art of the production or production process to other Unit in the same Special Economic Zone shall not require the permission of the Specified Officer provided that both the supplying and receiving Units shall maintain proper account of the goods involved in the subcontracting. Explanation: For removal of doubts it is clarified that the expression "subcontracting" of a part of its production under this rule shall mean subcontracting all the production processes for conversion of raw material into finished products but only for a part of the quantity of the finished products exported during the year or in the first year of production, the value of the goods subcontracted shall not exceed the value of goods produced by the unit in its....