Fabrication taxability

This query is : Resolved

Zoheb (Querist)
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07 January 2017 Dear All,

Would like to know whether Fabrication will attract ST? or VAT or CST ?
Office at mumbai and customer in other state.

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 January 2017 Fabrication will attract excise duty and VAT.

CA Suresh Jain

CA Suresh Jain (Expert)
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07 January 2017 If fabrication work is done at the client place and if it is covered by the definition of Work Contract, it will attract Service Tax

Zoheb

Zoheb (Querist)
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07 January 2017 Dear Seetharaman ,

Thanks for your response and for bothering,
How excise duty will get attracted?
how VAT ?
kindly justify with any reference or logic

Zoheb

Zoheb (Querist)
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07 January 2017 Dear Mrs. N Jain,

Can you tell me why not VAT and Excise comes under the ambit ?

Regards,
Zoheb

CA Suresh Jain

CA Suresh Jain (Expert)
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07 January 2017 I qualified my answer "if it comes under works contract" The appropriate reply can be given if could share the nature of fabrication work, the constitution of fabricator and principal, responsibility of supply of material, place of fabrication, whether principal is registered under excise and taking input credit, how is he clearing the goods for fabrication to job worker etc.

Zoheb

Zoheb (Querist)
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07 January 2017 Okay Thanks for the co-operation

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 January 2017 Fabrication is a manufacturing activity, hence excise duty is applicable, even in case of site fabrication under works contract attracts excise duty. VAT is applicable as transfer of property involved, including under works contract.

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