Sending input from principal to the job workerfor processing is not a taxable supply : AAR

Sending input from principal to the job workerfor processing is not a taxable supply : AAR | Kerala Authority of Advance Ruling in matter of

CA Deepak Gupta

Nov 3, 2018

Last update on Nov 3, 2018

Sending input from principal to the job workerfor processing is not a taxable supply : AAR | Kerala Authority of Advance Ruling in matter of M/S Bharat Petroleum Corporation Limited. Below is the extract of Advance Ruling In the light of the discussion above, we come to the conclusion that the transport of the inputs from principal for processing through pipe lines to the premises of job worker as well as " return of processed goods after job work to the principal can't be treated as taxable supply. Based on the observations stated above, the following rulings are issued: i) The activity of the applicant of sending Regasified Liquefied Natural Gas (RLNG), De-Mineralized Water (DM Water), Hydrogen Rich off Gas and Raw water free of cost to Mis. Prodair Air Products Pvt. Ltd. For manufacture of Hydrogen, Nitrogen and Steam manufactured out of its amount to 'job work' as defined under Section 2(68) read with Section 143 of the CGST / KSGST Acts.

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CA Deepak Gupta

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CA Deepak Gupta,is Co-founder of Studycafe. He is Microsoft Office Specialist and Corporate Trainer of AI Tools, Microsoft Excel. He is Finance Influencer having more than 250K followers on Social Media. CA Deepak Gupta, is Having more than 14 plus years of experience, and he has Worked with best brands Like, Hero, Wipro, Ericsson before Starting Studycafe. He has Trained more than 20000 Persons in Microsoft Excel, PowerPoint, Power BI, Google Sheet, Google Forms and Other Tools.