LABOUR JOB ACTIVITY, Central Excise

[SURYAKANT MITHBAVKAR]

We have registered with C. Excise as manufacture, whereas along with manufacturing activity we are doing labour job for our associate company. Our associate company also registered with C. Excise and they are cleared material under 214/86 to us and after processing we are raising service tax invoice without charging service tax (since final product is excisable)

since we are registered as manufacture can we do labour job ?

secondly, while processing labour job certain material we have to send for plating which is done from outside in this regard can we use our 214/86 for movement of this material?

Posts / Replies

[ashish chaudhary]

Yes, you can undertake job work activity also while being registered as manufacturer. Further, you can follow 214/86 route for subcontracting. It is suggested to intimate department regarding the activities undertaken.

[Mahir S]

yes sir, you can carry out job work and also sub contracting , as discussed above.

However, it is advisable to raise Job work invoices instead of service tax invoices .