SECTION-19. Taking input tax credit in respect of inputs and capital goods sent for job work. —

19. Taking input tax credit in respect of inputs and capital goods sent for job work. —

(1) 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.
(2) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, 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.
(3) 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:
Provided that 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.
(4) 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.

(5) Notwithstanding anything contained in clause (b) of sub-section (2) of section 16, 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.
(6) 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:
Provided that 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.
(7) Nothing contained in sub-section (3) or sub-section (6) shall apply to moulds and dies, jigs and fixtures, or
tools sent out to a job worker for job work.
Explanation.––For the purpose of this section, ―principal‖ means the person referred to in section 143.

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