Applicable excise or service tax - urgently

This query is : Resolved

Praveen kumar varma (Querist)
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24 September 2013 Dear All

We introduce ourselves as a manufacturers of Thermal Printers.
Our main products in market are Impress and e-Zeal Printers.
We are in Excise oriented unit from the year 2011 and we have been regulary manufacturing the above products in our units. We have some of the following queries regarding the billing and closing transactions in respect of excise and service tax, we furnish below our queries.
1. Up gradation : First Customer purchase some model printer from us, but sometimes customer needs some more features to be added in the same printer, then he will send those printers back for adding new features it can be software / hardware – In this please advise Excise or Service Tax we need to put in our billing and should we do the billing as new printer or we need to mention up gradation charges or we need to give the new part no. for this ( as in this case customer will pay only up gradation charges when he gives the printers for up gradation as he already paid the old devices charges ) For Example :-
Product A Selling Rate Rs.100 and Product B Selling Rate Rs.200. if One Customer Buy Product A and Sometime he wanted adding new features it can be software / hardware that time New product arises like B. and B Selling Cost Rs.200/-

2. AMC : Under this we repair / service the printers, we add our raw material for example, adaptors, screws, covers etc if needed and service them and sends back to customer- Please advise which bill we need to generate and what are the taxes and duties as in this case we are using our raw material + service also.

Regards
Praveen

ADITYA

ADITYA (Expert)
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29 September 2013 Hello Mr Pravin,

1. Up-Gradation
If up-gradation of printers amounts to manufacturer, then you have to charge Excise duty in the Invoice, you may deduct the cost / return value in the invoice it self.

Cost of Printer B Rs 200
Add : Excise Duty @ 10% 20
sub Total 220
Less : Credit for Material Return -100
sub total 120
Add Sales Tax Say 12
Invoice Value 132

Point No. 2 AMC

You have to pay Service Tax on you AMC Charges