Query Excise/Service Tax

I recently joined a  New Private Limited Company as An Accountant...

The company have its own unit (Factory), and is involve in production of  bakeing , biscuits, cakes, and other bakery items and selling it to the one and only Customer, XXXXXXX Limited.

Excise & Service Tax??

Required or not ???

Thanks & Regards,,,,,

Replies (3)

 excise duty is applicable on food products and bakery products if its turnover exceeds the specified limited as given in central excise act

Excise duty is leviable on biscuits/ cakes on the basis of descripttion & classification under ceta 1985.valuation of goods on removal from factory shall be as per standards weights & measurement act. Service tax shall be leviable if value of service provided exceed Rs.10lakhs.

Dear Sir

We are offering AMC services to our cusotmers. Thee AMC services include supply of spares parts nad labour and the repairs are done on  by our dealers. Dealer sends claims and we credit dealer account with the claim amount.  The service is taxable as per service tax act.

The question is do we need to chage and collect service tax from customer or pay the service tax to dealer at the time of consumption 

 

regards

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