Input Tax Credit on Job Work

Manufacturers today are operating in a competitive business environment. These manufacturing units are now focusing on their core products and most of the work is outsourced to outsiders or Job workers. Such practices often ensure cost efficient products while simultaneously accelerating the production cycle.

Job work is understood as the processing or working on of goods supplied by the principal, to complete a part or whole of the process. The work may be in the initial process, intermediate process, assembly, packing or any other completion process. The goods sent for job work maybe raw material, component parts, semi finished goods and even finished goods. The resultant goods could also be a variation of the same or the complete product.