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Section 19 — Job Work — principal can take ITC on inputs sent for job work:
AOnly if principal himself uses them
BEven if sent directly to the job worker without first being received at the principal's place
COnly if returned within 90 days
DOnly on capital goods
Answer & Solution
Correct answer: B. Even if sent directly to the job worker without first being received at the principal's place
1. Sec 19(2) — the principal is entitled to ITC on inputs sent for job work — even if such inputs are sent directly to the job worker without being first brought to his place of business.
2. Inputs must be returned to the principal (or sold from the job worker's premises, if such job worker's premises is declared as the principal's additional place of business) within 1 year.
3. If not returned within the time, it shall be deemed a supply by the principal on the date of original dispatch.
_Source: ICAI BoS CA Final Paper 8, Ch 6 "Input Tax Credit", §Sec 19(2)_
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