Section 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.