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Manufacture?

Avi Barjatya (Student CA Final ) (27 Points)

29 July 2014

my entity supply raw materials and get equipments from job worker and fix these equipments on customer's plant at their site. my entity has not have its own factory or warehouse. Is it cover under definition of manufacture under excise?

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3 Replies

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 29 July 2014

Sir,

In this resgrd you firstly piurchase the raw material then as it sale or not if you are sale as it then excise proceding not calculated but if you do manufacturing then it is cover but how to send the material for Job work, plz expalin.

Secondly you installed the plant & machinery in othr factories then service tax duty applicable in your condition and it is limit Rs. 10 Lakhs only.

if you need more information in this reagrd plz brief more.

Thanking you,

Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 23 August 2014

Dear Mr. Avi Barjatya,

In case of excise, it is very much important to see the process and understand indepth.

Hence i suggest, that please consult a expert practicing in excise so that they will solve your problem.

Thanks

Venkat

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 23 August 2014

If process amounts to manufacture then jobworker are liable to pay excise duty. The SSI exemption will not available to jobworker. The principal manufacturer will give the declearation to jobworker that we are under SSI exemption then jobworker will be exempt from central excise.