25 January 2009
WE HAVE RECEVIED SUB CONTRACT WORK FOR MANUFACTURING OF ENGINEERING GOODS FROM EPC CIVIL CONTRACTOR WHERE IN WE HAVE RECEIVED ALL THE MATERIAL FREE OF COST FROM OWNER OF THE PROJECT. HOWEVER AS WE HAVE RECEIVED ORDER FROM EPC CONTRACTOR WE WILL RECEIVE AMOUNT FOR ONLY FABRICATION AND ERECTION OF MACHINERY MANUFACTURED BY US.
IN THIS CASE WE HAVE TO CHARGED THE EXCISE DUTY ON WHICH AMOUNT ON OUR SUB-CONTRACT VALUE OR VALUE OF MATERIAL AND OUR SUB-CONTRACT VALUE.
01 February 2009
Firstly you have to decide whether you are manufacturing anything. If yes, excise duty is payable on the value of goods, which includes value of the materials.
CAclubindia
