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Excise Duty against Job Work / Lease based manufacturing facility

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..... Excise Duty against Job Work / Lease based manufacturing facility
Query (Issue) Started By: - SACHIN RAJPUT Dated:- 29-3-2017 Last Reply Date:- 30-3-2017 Central Excise
Got 4 Replies
Central Excise
Dear Sir, I am interested to start manufacturing food colour from one of the manufacturer based on monthly rent basis. I am showing it as a Job work because that unit will manufacture the .....

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..... product only for my company. I will procure all the raw material and suply it to them . they only use facility and manpower to convert it to finished product. I want to know, what kind of license required to manufacture such product. Also who will pay the excise duty agaist process. As per SSI unit, can i get benefit of 150 lack limit. Thanks Sachin Reply By Himansu Sha: The Reply: Sir, Ple .....

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..... ase make it more clear pointwise. Reply By SACHIN RAJPUT: The Reply: Dear Sir, Thanks for yourprompt reply. I am interesred to manufacture food color from one of the manufacturer on Job Work Basis in his facility. That facility will manufacture the product only for me based on our mutual undestanding. I will suply him all raw material require to manufacture Food color, which will be purchased .....

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..... by my company on my account. I will pay monthly rent for his facility. I want to know 1.What kind of license / certificate are required to manufacture product on job work basis. 2. What are the benefits i will get as i starting new business under Small Scale Industry (Exemption for Excise Duty) 3. I am manufacturing product on job work basis, who will pay the excise duty??? Kindly Suggest Mr .....

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..... . Himanshu 2. Reply By KASTURI SETHI: The Reply: Your product is eligible for SSI exemption benefit. First avail threshold exemption of ₹ 1.50 crore. Central Excise Registration Certificate is required from Central Excise Department. You can get job work done under Notification No.214/86-CE as amended. Exemption from CE duty on job work is admissible provided CE duty is paid on final pro .....

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..... duct by the Principal Manufacturer. Job worker can also pay CE duty depending upon agreement between both. Intimation has to be filed the jurisdictional A.C./D.C. under whose jurisdiction job worker falls. Intimation is to be given by the Principal manufacturer. Reply By KASTURI SETHI: The Reply: Dear Querist,. Pl.also go through notification nos.83 & 84/94-CE as amended. These are not for job w .....

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..... orker and jobbee ( Principal manufacturer).
Discussion Forum - Knowledge Sharing .....

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