Hi,
I am thinking of starting a diamond and gold jewelry shop. However, initially to reduce overheads, i am planning on outsourcing manufacturing of the jewelry. I will provide designs and raw materials to the manufacturer. They will manufacture the finished goods and return it to me. In turn, I will pay them for the manufacturing service they render.
Would service tax be applicable in this situation and who would be liable? Also, since I am not myself manufacturing the finished product, who would be liable for the excise duty, me or the manufacturer?
Thanks in advance for the help.