Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Goods and Services Tax - GST This

A Public Forum.
Acknowledging the Value of Experts.

Contribute Your Wisdom, Shape the Future.
Let Your Experience Guide Others

Submit new Issue / Query     My IssuesMy Replies
A free service.
You may submit an issue for brainstorming also.

Job work in GST, Goods and Services Tax - GST

Issue Id: - 110931
Dated: 20-9-2016
By:- Narendra Soni

Job work in GST


  • Contents

Dear Expert,

Please suggest whether job work is taxable in GST.

Taxable for Principle & for Job worker, registered and unregistered supplier & job worker

If returned after job working to principal, and

If direct sale/export from the premises of Job worker.

Thanks.

Posts / Replies

Showing Replies 1 to 9 of 9 Records

Page: 1


1 Dated: 20-9-2016
By:- MARIAPPAN GOVINDARAJAN

In my view it will be there. However it can be ascertained on the outcome of regular Acts and Rules.


2 Dated: 20-9-2016
By:- CA Surender Gupta

As per the scheme under the present Model Draft GST law, Goods will be allowed to be send for Job Work without payment of Tax.

Further, subject to conditions and permissions, goods will be allowed either to bring back or to sale / export directly from the premises of Job Worker.

Refer:

Section 16A : Taking input tax credit in respect of inputs sent for job work

and

Section 43A : Special procedure for removal of goods for certain purposes

Here, one more concern arises, that the provisions relating to Job Work has been provided under the proposed Model CGST / SGST law, therefore it is to be seen how it will be applicable for inter-state movement of goods since there is no corresponding provision in the proposed draft IGST law.


3 Dated: 20-9-2016
By:- Narendra Soni

Thanks Mr.Surender Gupta for proper clarification with section in this matter.


4 Dated: 20-9-2016
By:- Ganeshan Kalyani

The condition for sending the raw material to job worker and receiving it back or selling it from job worker premises is framed same as it is in current excise law. The time period of capital goods sending to job worker is also same in draft model gst law.

Thanks experts to enlightening the subject.


5 Dated: 20-9-2016
By:- YAGAY AND SUN

Only one major change that if goods are not returned within prescribed time limit then interest along with Duty needs to be reversed and at the event of return of goods interest along with duty shall be taken back.


6 Dated: 20-9-2016
By:- YAGAY AND SUN

Comptroller Auditor General's Objections on CENVAT Credit

CAG of India had conducted a Performance Audit on CENVAT credit scheme, to seek an assurance that provisions in the Act/rules/clarifications/procedures as laid down are unambiguous and adequate to safeguard any misuse of the CENVAT credit scheme and that the internal control and monitoring mechanism were in place and effective.

CAG found several provisions of the law inadequate in its recent report to Parliament.

Absence of provision for charging interest on reversal of credit for non-receipt/delayed receipt of goods sent for job work within 180 days

Inputs or semi-finished goods sent to job worker under rule 4(5) (a) of CENVAT Credit Rules, 2004, should be returned to the factory within 180 days. For failure to do so proportionate CENVAT credit on inputs/semi-finished goods not received back is required to be reversed. However, in case of delay in reversal of credit, there is no specific provision for charging interest on such delayed reversal. This results in loss of interest to the Government.

Audit Recommends:

The Government may consider inserting provision for charging interest in case of non/delayed reversal of CENVAT credit in respect of non/delayed receipt of goods sent to job worker. The Tariff Conference held on 28 and 29 October 2015 had decided that the interest is liable to be paid after the expiry of period of 180 days and there is no need for insertion of provision for charging interest. However, Audit is of the opinion that to avoid ambiguity there is a need to insert specific provision in this regard.


7 Dated: 21-9-2016
By:- Ganeshan Kalyani

Yes the good part is interest paid is also proposed to be cenvatable. Thanks.


8 Dated: 21-9-2016
By:- YAGAY AND SUN

Irony is that working capital shall be blocked in such scenario which is life blood for Business/Trade.


9 Dated: 22-9-2016
By:- Ganeshan Kalyani

It will enduce assessee to do timely conplaince.


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates