Which option is best for development charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2011 Scenerio Analysis for development cost for all packaging artwork and die development to M/s.V

Description:- Development charges for packaging artwork and dies development for the new MRP's for the product manufactured in M/s.C

Development Charges

Scenerio 1 Scenerio 2
M/s.G to M/s.C Step 1:- M/s. G to M/s. V Step2 :- M/s. G to M/s. C

Option 1 Option 2 Step 1
Description :- Invoice raised as tooling & development charges Description :- Invoice raised as labour charges Description :- Invoice raised as tooling & development charges

Transaction Details Transaction Details Transaction Details
Basic:- 3,55,808/- Basic:- 363069.38/-(Basic +2% added TDS) Basic:- 3,55,808/-
+ Excise :-5.15% -TDS:- 2% + Excise :-5.15%
+CST:- 2% Against C form +Vat:- 5%
Point to be considered Point to be considered Point to be considered
2 % CST loss in the transaction No CST Loss Excise and Vat Credit will be taken by M/s.C

Step 1

Option 1 Option 2
Description :- Invoice raised as tooling & development charges Description :- Invoice raised as labour charges

Transaction Details Transaction Details
Basic:- 3,55,808/- Basic:- 363069.38/-(Basic +2% added TDS)
+ Excise :-5.15% -TDS:- 2%
+CST:- 2% Against C form
Point to be considered Point to be considered
2 % CST loss in the transaction No CST Loss

Querist : Anonymous

Querist : Anonymous (Querist)