My client is into the business of refurbishment of mobile. They are buying old mobiles from the market and then repairing them including replacing the parts (if necessary). After repair, they are selling these mobiles as refurbished item. Whether this can amount to manufacturer in any sense. As selling price is decided by my client according to the condition of goods.
30 March 2013
No, it is not manufacturing but falls under services. manufacturing means an activity involved in making, amending, modifying, reshaping, inventing, assembling etc. but in this case there is a product already assembled, manufactured and shaped. the client is only repairing it to get it into working condition and nothing doing with the value addition, assembling or making of the mobile phones.
22 May 2013
Yes I agree with the expert. Your client is simply repairing it and selling to others at a very low price in that case you might fall under payment of VAT although you have not purchased in bill and you cannot avail any VAT credit as you are unregistered dealer