The product which we manufacture is used in automotives based on the HSN its rate is 18% whereas the car as Finished Product is taxed at 28% should I charge 18% in the bill for the supplies to be made or 28%
sivaram (Asst Mgr-Taxation) (6918 Points)
28 June 2017The product which we manufacture is used in automotives based on the HSN its rate is 18% whereas the car as Finished Product is taxed at 28% should I charge 18% in the bill for the supplies to be made or 28%
upasana gupta
(Finance Professional)
(3931 Points)
Replied 28 June 2017
As you are the manufacture of the automotives and you are giving invoice to the customer so on sale of automotives you will charge at the rate of 28% and you can take credit at the rate of 18% for the part which you used in making the automotives.
CAclubindia
