In this guide 6 sections
Keep one register row per challan line, noting issued quantity, returned quantity, scrap, balance and a status of sent, partly returned, closed or overdue. Filtering it then fills the ITC-04 return. No month of rebuilding. Your accountant files the return. This is not tax advice.
Start with one row per challan line
Most Peenya units track job work in a notebook or a spreadsheet tab per worker, and trouble starts when one challan covers four parts returning on different days. Then the notebook fails. Someone phones, and the worker guesses.
Give every line its own row. A line holds the challan number, date, job worker, part code, quantity sent and unit, because goods never leave the gate as one lump.
Add the nature of the work, such as turning, powder coating, anodising or heat treatment, to answer why shafts sat at the plater for weeks.
- Challan number and date, entered once
- Job worker name with address and tax registration
- Part code, drawing revision and heat or batch number
- Quantity sent, unit and expected return date
Record every return against the original line
A returned lot rarely matches the challan. A worker sends back 377 of 400 pieces, holds twenty for rework and scraps three bushes, and a fresh entry would lose its link to the original challan. Never type it fresh.
Make each return refer to a challan line, so the software subtracts it, shows the balance sitting with the worker, and flags the line as partly returned. Close it only with a typed reason. Silent write-offs are how castings vanish.
Capture the returning document too. Store the worker’s delivery note or invoice against the return, with its number and date, and scan it, because paper in a drawer helps nobody at audit time.
- Return date and the worker’s document number
- Good quantity back, rework quantity and rejected quantity
- Scrap weight and whether the scrap came back or stayed
- Balance still with the job worker
Flag pending lines before the deadline does
Goods sent out under a challan carry a time limit under the goods and services tax rules, and the limits differ for inputs and capital goods. Check the current limits on the GST portal and with your accountant.
The register should show age in days for every open line, oldest on top, and a list sent to the stores head each Monday will catch slow platers. An overdue line becomes a tax problem. So catch it early.
Colour alone is not enough. Add a status column with sent, in process, partly returned, overdue and closed, so a filter can pull each group for the Monday meeting.
Shape the register so the return fills from it
The ITC-04 return lists goods sent to and received from job workers, and a register with challan numbers, values, HSN codes and quantities turns it into an export. Nothing needs retyping.
Try it on last quarter first. Filter the register for that quarter and ask whether you could fill each table of the return without opening a single paper challan. Gaps show which columns are missing.
Store rate and value per line. Enter them when the challan is printed, because recovering them months later from carbon copies is slow, tedious work that nobody on the shop floor wants to do.
- Quantities sent, received and still pending by quarter
- Goods lost, scrapped or sold from the job worker’s premises
- Description and classification code for every part
- Job worker registration details for each row
Run a monthly reconciliation with each job worker
Software shows what you believe. The job worker holds the truth. Once a month, email or WhatsApp each foundry, plater or turning shop a statement of open lines, and ask for a signed confirmation of the balance.
Disputes surface quickly this way. A worker may say a lot of brackets came back on the fifteenth while your register shows nothing, so fix the entry then and keep the gate slip.
Start with three busy workers. Add the rest once the routine holds, because people must trust the register or they will go back to the notebook, and one owner should chase every late return. The stores head makes a sensible owner.
Job work challan tracker
One row per challan line. Columns cover challan number, date, job worker, part code, quantity sent, return date, good, rework, rejected, scrap weight, balance, age in days and status. A second tab totals balances. Print it for the monthly statement and file each signed copy in the worker’s folder, so the confirmation is there when the next lot is issued.
Open a blank worksheet to printQuestions owners ask
Can one register serve several job workers?
Yes, each row carries the worker name. Keep a summary view per worker so you can print each one for the monthly balance check and hand it over with the open lines marked.
What happens when goods go from one job worker to another?
Record a transfer line linked to the original challan, so the balance moves to the next worker and the full trail stays visible to your accountant. Nothing drops off the register.
Should scrap be tracked as a quantity or a weight?
Track both where you can. Pieces show the loss against the order, while weight lets you compare scrap and returned swarf against what the bar stock should have yielded.
Is this software guide a substitute for tax advice?
No, it is not. The register collects facts, and your chartered accountant decides how the return is filed and which limits apply to each lot you sent out.