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clarification

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05 February 2011 Dear Sir,

we are the manufacturer of small volume parentrals mainly on job work basis of loan licencee parties.

we are clearing the goods by paying central excise duty.

sales tax official are saying that we are selling Water For Injection to our loan licence parties hence we have to pay tax. but it is part of manufacturing.

we wanted to know that manufacturer of small volume parentrals on job work basis comes under works contract.

hope you understand our problem.

waiting for reply.

Mohan Patel

06 February 2011 This is a composite works contract , works plus transfer of material , I think tax will apply on water sale.



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