Is service tax applicable on job work charges ?
This query is : Resolved
08 October 2013
Dear All,
I am working in a consortium of Ayurvedic Medicine Manufacturing Companies. We also undertake job works for our members & raise job work bills to them. The principal buyer will send us main drug. At the time of manufaturing, we need to add some of our stores like gelatin,glycerin,preservatives etc. My question is whether Value Added Tax is applicable to excipient cost & Service Tax is applicable on the Labour charges & Intellectual Charges. waiting your kind replay
I am working in a consortium of Ayurvedic Medicine Manufacturing Companies. We also undertake job works for our members & raise job work bills to them. The principal buyer will send us main drug. At the time of manufaturing, we need to add some of our stores like gelatin,glycerin,preservatives etc. My question is whether Value Added Tax is applicable to excipient cost & Service Tax is applicable on the Labour charges & Intellectual Charges. waiting your kind replay
08 October 2013
No service tax applicable. Job charge is out of service tax purview..if you show excipient cost separately then VAT is to be charged, otherwise if the CCPS is already agreed as per Loan and License agrmnt then charge CCPS straight away and no need to show excipient cost separately and hence no VAT to charge.
Message likes :
1 times
08 October 2013
Can u say me what u mean by CCPS ?
08 October 2013
CCPC is a term used in pharma job section which stands for Conversion charges Production charges..
Message likes :
1 times
08 October 2013
Agree with Arunji
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Is online PGCE worth it?
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
