Important points in respect of inputs and capital goods sent to the job worker-

• The inputs shall be sent to the job worker under a challan by the Principal and in respects of goods sent from one job worker to another, the challan to be issued by the Principal or the job worker sending goods to another job worker.

Provided that the challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal.

• The challan endorsed by a job worker may further be endorsed to another job worker mentioning therein quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal.

• The challan should contain all details specified in Rule 55

• The principal shall be entitled to take credit of input tax on inputs even if the inputs are directly sent to a job worker for job work without being first brought to his place of business.

• Where the inputs sent for job work are not received back by the Principal after completion of job work within one year from being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out. This will however not apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.

• Where the inputs are sent directly to the job worker, the period of one year shall be counted from the date of receipt of inputs by the job worker. This will however not apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.

• Where the capital goods sent for job work are not received back by the principal within a period of three years of being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out. This will however not apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.
• where the capital goods are sent directly to a job worker, the period of three years shall be counted from the date of receipt of capital goods by the job worker. This will however not apply to moulds and dies, jigs and fixtures, or tools sent out to a job worker for job work.