Question:
We are the fabric manufacturer located in Maharashtra. We want to do some
finishing of fabric at job worker place at Karnataka. Can we export/sale in
domestic market directly from Karnataka on our tax invoice or is it must that we
brought back physically to Maharashtra and then sale.
Answer:
The goods can be directly sold or exported as the case may be from the place of
Job worker Please see Section 143 as follow
Section 143: Job work procedure.
(1) A registered person (hereafter in this section referred to as the
'principal') may under intimation and subject to such conditions as may be
prescribed, send any inputs or capital goods, without payment of tax, to a job
worker for job-work and from there subsequently send to another job worker and
likewise, and shall,''
a) bring back inputs, after completion of job work or otherwise, or capital
goods, other than moulds and dies, jigs and fixtures, or tools, within one year
and three years, respectively, of their being sent out, to any of his place of
business, without payment of tax;
b) supply such inputs, after completion of job work or otherwise, or capital
goods, other than moulds and dies, jigs and fixtures, or tools, within one year
and three years, respectively, of their being sent out from the place of
business of a job worker on payment of tax within India, or with or without
payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of
business of a job worker in accordance with the provisions of this clause unless
the said principal declares the place of business of the job-worker as his
additional place of business except in a case'
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be
notified by the Commissioner. The provision mentioned above are as on today .we
expect some circular from the Government for detailed procecure the same will be
applicable after they are issued. (Reply Dt. 26/12/2017)