ITC on Inputs
The principal shall, subject to such conditions and restrictions as may be
prescribed , be allowed input tax credit on inputs sent to a job worker for job work.
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 or otherwise or are not supplied from the place of business of the job
worker in accordance with clause (a) or clause (b) of sub-section (1) of section 143 within
one year of 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 but shall 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 a job worker, the period of one year shall be counted from the date of receipt of inputs by the job worker.
ITC on Capital Goods
The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed input tax credit on capital goods sent to a job worker for job work.
The principal shall be entitled to take credit of input tax on capital goods even if the capital
goods are directly sent to a job worker for job work without being first brought to his place
of business.
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 but shall 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.
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