Regrinding service from manufacturing Plant


This query is : Resolved 

22 January 2009 Dear Sir,
My query is related to Excise which is as follows:
I have a manufacturing plant at,say, Bangalore. It is registered as an Excisable plant. Customers to whom I sold the manufactured Goods,say Tool, and some other customer (Customer who purchased the Goods of some other Manufacturer)comes to me for sharpning of the Tools.
I took the goods for sharpning in my Excisable plant and do all necessary activities and return the goods to the customers.
Now my Questions:
1. Can I take the Customer's tools to my Excisable plant.
2. If yes, then what are the provisions of the Excise and service Tax act will be attracted.
3. If No, Then what is the way out.


Rajeev

30 January 2009 Well, what your plant is doing is providing output service on repair, which taxable as servce tax.
I am sure you must be registered in service tax. Add repair service on that registration too. Bring material for repair. use inputs/capital goods in such repair and take credit on them. Pay service tax o repair charges. It will be much simpler this way.


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