Kabrina Ltd. supplied inputs to job worker Shabrina Ltd. for further processing on 6th September, 2019. The inputs were received back on 7th October, 2020 after necessary processing. What are the tax implications on Kabr

If the goods are not sold / brought back within the stipulated time, the supply between the Principal and the job worker is treated as "Deemed Supply" and tax is payable thereon by the Principal. In this case, the supply between the principal and job worker would be deemed as a supply on the date of transfer and hence tax should be paid along with applicable interest from that date.