1. Is Excise applicable if we produce glass panels (Job work only assembling of different material together) from factory/workshop? Glass Panel will majorly include glass, aluminium section, gaskets, silicon and screws. We will procure material from different suppliers (excise registered and unregistered) and then assemble them at our factory and use it in execution of our projects for corporate/institutional clients OR may sale the glass panels to third party.
2. If yes to point#1, What are the advantages & disadvantage being Excise registered. Generally our clients are developers, institutions, corporate etc who generally does not fall in Excise category, so will it be additional cost for them if they buy from us after we are Excise registered?
3. We generally buy two kind of material, one, where Excise are separately mentioned in the invoices like Aluminium & Glass and two, where excise are not at all mentioned in the Invoices like Steel, fabricated brackets, Silicone, Screws etc then what should we take as landed cost in each of the case. Our Costing as of now looks like [ Landed cost (including excise) + Profit + VAT & Service tax], In case when we are excise registered our Costing will look like [ Landed cost (excluding input excise, if we can claim input credit of excise)+ Profit + Excise Duty on material value (glass panels) + VAT & Service Tax]
4. How Excise amount will be valued on the fabricated and / or glazed panels? Can you please elaborate it with an example of material worth Rs. 100.
Thanks in advance.
CAclubindia
