Trial runs

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This query is : Resolved

V.N.Balasubramanian

V.N.Balasubramanian (Querist)

11 August 2015 We're into breakfast cereals manufacturing. If we need to allow our important customers to conduct trial runs for a day or two at our factory using our production facility and raw materials, please clarify, whether we need to charge Duty/VAT/Service charge when we raise invoice for trial run charges and the cost of the raw material.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 August 2015 Vat applicable on cost of raw materials and service tax payable on trial run charges. If excise duty is payable treating it as manufacturing activity, no vat and service tax payable.

V.N.Balasubramanian

V.N.Balasubramanian (Querist)

11 August 2015 Thanks very much Sir. Can you please clarify whether we have the choice to treat it as a manufacturing activity and collect duty or collect VAT & Service tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 August 2015 It is a manufacturing activity, collect excise duty any how consult excise people.

V.N.Balasubramanian

V.N.Balasubramanian (Querist)

11 August 2015 Thanks a lot for your immediate reply

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