Tranasaction framework


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Querist : Anonymous

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Querist : Anonymous (Querist)
08 September 2012 Dear Expert,

Fact:
ABC Pvt ltd want to outsource Bottle Jar to XYZ Co.

For this ABC Co. providing machnery with labour. XYZ has to supervise the Production.

Here option that XYZ co. can provide material also

QUERY:
1. Whether it can make like Labour contract, for service tax.

2. Applicability of Excise as ABC Ltd already Manufacturer.

3. Any other option to framework the transaction with relevent Law imapct.



09 September 2012 The ABC Pvt Ltd. can outsource the process of manufacture of Bottle Jar.

It worth noting that Carrying out an intermediate production process as job work in relation to any goods on which appropriate duty is payable by the principal manufacturer is exempt from service tax .




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