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Job Work Agreement

જોબવર્ક કરાર

Principal sends material, job worker processes it and sends it back. Simple in practice, and consistently under-documented in the Vadodara manufacturing belt.

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Why a one-page job work order is not enough

The material never stops belonging to the principal, but it sits for weeks on someone else's floor. That single fact generates every question the document has to answer:

  • Ownership at each stage — stated expressly, so there is no argument that title passed.
  • Risk in transit and risk in process — two separate allocations, and insurance for each.
  • Wastage and yield — the permitted norm, and who bears the excess. This is the most common commercial dispute in job work and it is nearly always undocumented.
  • Quality, rejection and rework — the standard, who inspects, and who pays for reprocessing.
  • Turnaround time, and the consequence of delay.
  • The GST position and the documentation that accompanies movement of goods.
  • Scrap and by-product — who keeps it and at what value.
  • Confidentiality and tooling — where designs, dies or moulds are supplied, who owns them and what happens to them at the end.
What happens if the job worker's premises are attached?

If the job worker becomes insolvent or his premises are attached, the principal's material is on that floor. A clear written record that the goods belong to the principal, supported by the movement documentation, is what stands between you and a long argument with a creditor. This is the clause nobody thinks about until it is needed.

On stamp duty.

We do not publish duty figures on this website. The Gujarat Stamp Act, 1958 was amended in 2025 and several articles were restructured; a rate printed on a web page goes stale and costs somebody money. As a Government authorised e-Stamping centre we confirm the duty currently prescribed for your specific document and issue the e-stamp against it, at face value. The notarial fee is separate and capped by law — ₹35 to attest execution, ₹35 to administer an oath or take an affidavit, under Rule 10(1) of the Notaries Rules, 1956. The full fee table →

Drafted here, in Gujarati or English

Drafted by an advocate of 35+ years rather than filled into a downloaded template, e-stamped at a Government authorised centre, and notarised in the same visit. If the parties read Gujarati, the document is drafted in Gujarati — not translated out of an English form, because legal Gujarati has its own settled vocabulary and a literal translation frequently means something looser.

What to bring

  • Description of the material and the process
  • Agreed rate, wastage norm and turnaround time
  • GST registration details for both parties
  • Details of any tooling, dies or designs being supplied
  • Insurance arrangements for goods in transit and in process

Related

Common questions

Who owns the goods during job work?

The principal does, throughout — but the agreement should say so expressly, because the goods are in someone else's possession and possession is what a third party sees. Say it, and support it with proper movement documentation.

What should the wastage clause say?

A permitted norm expressed as a percentage of input, and who bears loss above it. This is the single most common job work dispute in the Vadodara belt and it is almost always because no norm was agreed in writing.

Do we need a separate agreement for each order?

No — a framework agreement covering ownership, risk, quality, wastage and payment, with individual orders issued under it, is the practical structure. That way the terms are settled once and each order simply records quantity, rate and date.

Not sure which document you need?

Tell us what the office, bank or court asked for. We will name the exact document, the stamp value and whether notarisation is enough — before you pay anything.

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