Subcontracting for customer

[Former Member]

We have a process in which we are doing subcontracting for our customer. Our external customer will send the material to us on 57f4/Excise paid subcontracting challan. We will process the material and send it back to the customer. How can we map this process.

[Lakshmipathi]

Dear Kannan

I hope you would have gone through the suggestion given by me in this link

[Subcontracting in SD |]

Whatever suggested there holds good for your process also. That is ED and Tax is NOT applicable

After completion of the job work, if you are returning partial quantity of the component back to customer, then you should use Annexure VI Challan to fulfill Excise Regulations. At the time of sending the final quantity, you should return the original 57F4 challan duly filled in at the bottom space.

In case, you are returning the entire quantity in one lot, then Annexure VI is not required.

Thanks

G. Lakshmipathi

[Former Member]

Thanks.

I have gone through the earlier threads.

But I still have some queries.

If I am not wrong then Material type will be non-valuated and taken in the system through 501 mov type. For dispatch i will use the sales order mode with billing for the services and material provided.

In case the customer sends the material on 57F4 how I track the challan.

And if the material is send on excise paid subcontracting then how will take the credit for excise.

Thanks

[Former Member]

Kindly let me know the steps in case the customer is sending the material for subcontracting with excise paid invoice