Job Work :

Movement of goods to job workers is an essential business situation which occurs frequently. Many times a manufacturer send goods to a job worker for getting furtherwork done on them, and receive the goods back from job worker or sell the goods directly from the place of job worker. The tax position along with this movement of goods needs specific attention because the availability of input credit depends on use of goods for the manufacture of final product, and once goods are removed from the factory, it is significant to ensure that these goods either come back to the factory of manufacturer or otherwise are incorporated in the final goods sold by the manufacturer. In the existing regime, the value addition by the job worker is either taxable as manufacture or as taxable service, and in both cases, an exemption is granted to job worker in case, the principal manu -facturer  pays duty on the goods received after job work including the value addition. Presently the concept of taxation of the goods sent to a job worker is used in central laws, namely central excise and service tax. It is not used in VAT laws. In GST Act, the same concept has been adopted more or less.