Excise on paper & paper products
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 November 2011
Dear Sir
I have a Printing and Punching unit. Currently I am buying coated paper from a company @ 10.3% excise Duty whereas Excise duty on uncoated paper is 5.15%.
If I get the coating job outsourced I need to pay service tax i.e 10.3% on job workers labour amount and excise on paper that is 5.15%. Now I am still in non-excise limit means below 150lacs.
Will this type of transaction create a problem with excise department
I have a Printing and Punching unit. Currently I am buying coated paper from a company @ 10.3% excise Duty whereas Excise duty on uncoated paper is 5.15%.
If I get the coating job outsourced I need to pay service tax i.e 10.3% on job workers labour amount and excise on paper that is 5.15%. Now I am still in non-excise limit means below 150lacs.
Will this type of transaction create a problem with excise department
29 November 2011
coating of paper is dutiable activity, and job worker is liable to pay duty on total clearance value ( labour + materials both)
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 November 2011
Dear Sir
What do you excatly mean by TOTAL CLEARANCE VALUE. Does that include the value of paper also in that?
Or is it with the material used for coating other than paper??
Just for information the job worker is charging me service tax on his labour i.e 10.3%
What do you excatly mean by TOTAL CLEARANCE VALUE. Does that include the value of paper also in that?
Or is it with the material used for coating other than paper??
Just for information the job worker is charging me service tax on his labour i.e 10.3%
15 December 2011
for manufacturing goods the valuation rules are correct, however if the job worker is under 150 Lacs, then enjoy as the libility is below threshold limit and no duty payable.
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