Information Requested About Sending Raw Materials To Job Workers Reg.

Dear Sir,

Sub : Information requested about sending raw materials to Job Workers reg.

With subject to the above we are registered dealer with Aminjikarai Assessment Circle having TIN 33251023498 & CST 814631/05.08.2002 and doing leather goods export business. We have branches/factories registered with the department in 5 different places for manufacturing the leather goods.

Also we are sending the leather / accessories (including all for making) to some job work parties with in Tamil Nadu “Also mentioning in Delevery Challan & Form JJ as only for Job Work purpose” and getting back from the job workers as finished goods. Some of the small job work vendors are not registered with Commercial Tax Department as a dealer.

Further I request you to kindly provide the details about whether the Job Work vendors need to register with Commercial Tax Department or not and advice what are all the documents we have to send along with the materials while sending the raw materials to the unregistered Job Workers.

Thanking you,

Your’s faithfully,

(G. SUNDARESAN)
Manager – Accounts.
+91-9094059896
E-Mail : admin@pioneerinc.in

Dear Mr G. Sundaresan,
This query should have been raised at CiteFin Finance Management Community Knowledgebase and not on this forum!
When you send the material for job work, your vendor adds value in it and returns to you. To add value, vendor further adds his own material or processes the material provided to him. Therefore, for the material that is added by him he will add VAT and for the services that he has rendered, he will raise Service Tax. This is what my general understanding is.
Thanks,
Dinesh Divekar