16 May 2014
A proprietorship enterprise carrying on Construction business, through a contract manufactures solid cement blocks for the purpose of construction and does not sell out those manufactured solid blocks. The raw material for manufacturing the block is provided by the proprietorship itself but the machinery used for such manufacture is owned by the contractor. Please clarify whether excise duty is applicable for the proprietorship enterprise for such manufacture and is there any service tax liability for the same in the given case
19 May 2014
The excise duty will be applicable on manufacturing of goods and service tax will be applicable on taxable services provided by you. In both condition SSI exemption will be available so, you should consult with any professional.
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