Inputs and Capital goods sent for job-work to be returned back to the Principal within one and three years, respectively from the date of their sending.
Return of moulds, dies, jigs and fixtures or tools sent by Principal to Job-worker not required.
Inputs & Intermediate Products can be removed to the job-worker without payment of tax.
Waste & Scrap can be cleared by the registered job-worker directly from his premises on the payment of tax. Such waste may be cleared by the Principal in case job-worker is not registered.
In case of job-work, the ownership of the goods is not transferred to the job-worker. It remains with the Principal.
Inputs/Capital Goods can be sent from one job-worker to another job-worker without payment of tax. ITC availed is not required to be reversed while sending the goods on job-work.
Inputs/Capital Goods can be directly sent to the job-worker without bringing them into the premises of the Principal. ITC can be availed by the Principal in such cases.
Job-worker can remove the goods without payment of tax to another manufacturer or to another place of business of the Principal or remove the goods on payment of tax within India or without payment of tax for export outside India.
Goods can be cleared directly from the premises of the job-worker to the third party by the Principal on declaring the premises of the job-worker as his additional place of business in registration. Where the job-worker is registered this condition is not required to be fulfilled.
Principal is required to intimate to the jurisdictional officer the details of the description of on inputs/capital goods, nature of processing to be carried out etc. before removal of the goods for job-work.
Inputs/Capital Goods can be removed for job-work under a Delivery Challan. Issuance of challan is necessary even where goods are directly sent to the job-worker.
Responsibility for keeping proper accounts for the inputs or capital goods would lie with the Principal.