Section-20. Taking input tax credit in respect of inputs sent for job work
(1) The “principal” referred to in
section 55 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 their 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 (b) of sub-section (1) of
section 55 within a period of one
year of their 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 their
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 their being sent out, it shall be
deemed that such capital goods had
been supplied by the principal to the jobworker
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.