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TaxTMI 
TaxTMI 
TaxTMI 
JOBWORK AND DESPATCH
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....OBWORK AND DESPATCH<br> Query (Issue) Started By: - SACHIN SHAH Dated:- 9-2-2011 Last Reply Date:- 26-8-2011 Central Excise<br>Got 3 Replies<br>Central Excise<br>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 ....
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....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 or Surat unit , Consigner name & consigee name etc. 2) Please brief all procedure . SACHIN Reply By Mangesh Lokre: The Reply: Y....
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....ou 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. Reply By Seetharaman K C: The Reply: The following provisions in relation to valuation will apply. Utmost ca....
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....re should be taken that despatches from the job worker are done keeping the following provisions in mind Valuation in case of job-work - there is no sale when the buyer sends the material free of cost to work upon it and in turn the manufacturer get the work done from job worker. In such case, till 31-3-2007, assessable value was to be calculated as the cost of raw material supplied by the buyer ....
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....plus job charges. However, with effect from 1-4-2007 the provisions of valuation of goods manufactured by the job worker has been changed and Rule 10A has been inserted to the valuation rules. Accordingly: (i) where the goods are sold by the principal manufacturer for delivery at the time of removal of goods from the factory of job-worker, where the principal manufacturer and the buyer of the g....
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....oods are not related and the price is the sole consideration for the sale, the value of the excisable goods shall be the transaction value of the said goods sold by the principal manufacturer; (ii) in a case where the goods are not sold by the principal manufacturer at the time of removal of goods from the factory of the job -worker, but are transferred to some other place from where the said go....
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....ods are to be sold after their clearance from the factory of job-worker and where the principal manufacturer and buyer of the goods are not related and the price is the sole consideration for the sale, the value of the excisable goods shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time....
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...., at the time nearest to the time of removal of said goods from the factory of job-worker; (iii) in a case not covered under clause (i) or (ii), the provisions of foregoing rules,wherever applicable, shall mutatis mutandis apply for determination of the value of the excisable goods: Provided that the cost of transportation, if any, from the premises, wherefrom the goods are sold, to the place ....
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....of delivery shall not be included in the value of excisable goods. Explanation.- For the purposes of this rule, job-worker means a person engaged in the manufacture or production of goods on behalf of a principal manufacturer, from any inputs or goods supplied by the said principal manufacturer or by any other person authorised by him. Reply By SACHIN SHAH: The Reply: SS<br> Discussion Forum - ....
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