We are selling brass strips to a customer in Uttaranchal after charging excise duty on it. We are then converting brass scrap generated from the same to finish goods for the same customer without charging excise duty or sales tax on our Jo-work charges. The customer is not paying excise duty on the goods as he is exempted. Is this correct? And if not then what can be done to salvage the situation.
Fist of all on Job work only service tax is charged no excise and sales tax is there. Ask your customer to give the copy of exemption certificate of Excise and Service tax. if both excise and service are exempted for customer then its correct but if ur customer is not exempted then you need to charge excise duty on sale and service tax on Job work charges.
| Originally posted by : jagat singh | ||
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Fist of all on Job work only service tax is charged no excise and sales tax is there. Ask your customer to give the copy of exemption certificate of Excise and Service tax. if both excise and service are exempted for customer then its correct but if ur customer is not exempted then you need to charge excise duty on sale and service tax on Job work charges. |
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Dear Sir,
Our customer is deducting service tax on our Job work charges and is exempted from excise vide 50 / 2003 Notification. But, we are being asked to debit excise duty on the total value of the goods been job worked. Kindly, suggest.
your customer is wrong,
service tax is either charged or exempted, it can not be dedcuted by anybody.
Sorry, my mistake. Our customer is deducting TDS and not service tax.
TDS u can claim refund/ set off as income tax payable, at the time of filing return of yours.
Aggarwal Sarawagi and Co
New Delhi
CA
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Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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CAclubindia
