11 June 2014
i am running a business of manufacturing of hand tools. i want to know if some party ask me to manufacture for them and in that case they provide me with a raw material, will that be consider as a job work or not? and also if they dont provide raw material i.e i purchase raw material myself what will be the nature of the transaction. and its accounting treatment. another query related to this is that, at the time of making a bill am i going to charge vat and excise (as mine is a excisable unit) or serivce tax? plzzz clearify.. thank you
11 June 2014
When you receive raw materials from party, and they exercise control over the transaction, then he is manufacturer. He is liable for excise duty. And Vice-versa rule prevails.
CAclubindia
