Excise duty on conversion of gold into medals/dollars.

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2016 As per the customer specifications, we prepare medals and dollars from gold received from the customer. We charge only making charges from the customer. Is excise duty leviable in this situation? If yes, on what amount duty is to be charged? Who should pay the duty?
Is service tax applicable in this situation?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 August 2016 Yes excise duty applicable. Duty to be charged including the material value. Customer has to pay the duty. Service tax not applicable being manufacturing activity.
No excise duty if gold smith prepares as per customer specification and delivers to the customer.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2016 Thank you Sir.
What if the ornaments from temples are converted into Gold bars and silver bars?
What rate of excise duty comes to effect?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 August 2016 No excise duty will be applicable on it.

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2016 Sir,
Is service tax applicable on the same?

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