Keeping material outside at job worker end

Rishi arora (Querist) 21 June 2012 This query is : Resolved
we are in manufacturing company where we are required to send our stock to job workers on returnable DC for various operations. I want to know what is the statutory maximum limit in days for keeping our stock with job workers for those operation

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RAJU O.F., (Expert) 22 June 2012
I don't think there would be any stautory maximum limit for such purpose. For the nature and time required for the job work, you can allow a reasonable period. If the stock of raw materials are hypothecated to bank/FI, you have to convince them also for such reduction of stock due to job work.

Guest (Expert) 22 June 2012
Not any statutory provision, but as per the principles of material management, at the most 10-15% more than the daily consumption. Rest depends upon the nature of material, job requirements, supply chain management, warehousing capacity at both ends and other conveniences of the management and workers.

Rishi arora (Querist) 23 June 2012
sorry to add one more thing It was excisable material where we have taken cenvat credit

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