alleryStart learning →A principal sends inputs for job work under intimation. Tax on that movement is:
APayable at 5 percent
BPayable by the job worker
CNot payable on sending
DPayable only on return
Answer & Solution
Correct answer: C. Not payable on sending
Inputs or capital goods may be sent to a job worker without payment of tax under the prescribed conditions.
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Related questions
Which section covers liability when a company is in liquidation?Which section makes a firm and its partners jointly liable for tax?Which section deals with liability of directors of a private company?Which section of the CGST Act lays down the job work procedure?Inputs go direct from supplier to job worker. Credit is:The principal can claim input tax credit on inputs sent to a job worker:For job work, the word input is stated to include:Inputs not back from job work in a year are deemed supplied: