12 January 2016
we are mfg. of Paper printing label. we purchase raw material of Block and Die with exciseable invoice. cenvat credit in RG 23A Part II in invoice copy buyer and consignee are our name and we are made payment amount against purchase invoice.
After we mfg. of label and exciseable invoice made to our Sales Party. At that party we charges separate "Block & Die Charges" and charges Excise and vat on "Block & Die Charges".
my query is we are not actual sales "Block & Die Charges" which is show in exciseable invoice but we collect "Design Charges" which is made in house on B/h of our Sales Party. if we show in invoice word "Design Charges" instead of "Block & Die Charges" any SERVICE TAX liability create for our side. we have already charges excise duty on said ledger.
if service tax liability yes please sagest which word use not cover service tax and charges only excise duty.
Devang Shah
Guest
Guest
(Expert)
20 January 2016
Using the dominant nature test, what you are doing is right. The engg charges are nothing but the value of goods supplied because the design is inextricably linked to product you supply. However, I urge you not to show service charge separately but to include the same in the value of goods and give a single invoice.
CAclubindia
