Dear Sir
I want to know whether the taxability of Final Product is classified based on HSN Codes or not. Is there can be only one class of goods for one firm (i.e. Whether a firm can't have goods falling under different tariff heads like 1% & 10% etc). Plz notify the rules and provisions numbers related to the matter.
And also the raw material purchased is taxable at 1% (cenvat will not be claimed) used for the production of goods falling under 1% which in turn is used for production of exempted goods. The dept people are saying u have to pay tax on intermediate product itself as the final product is exempt. Please clarify me.
Yours Faithfully,
Ashwath J Shetty
CAclubindia
