which tax applicable on design sale ?

This query is : Open

Yogesh (Querist)
Follow

10 June 2009 dear all

We are saling one product. the prodct P.O. is open m which has not mentioned any specific date of closing order. they have issued seprate order of design & devolopent charges.we are issuing sale invoice against devolpment & design charges with include service tax.
is it correct?

Because of I heard excise duty will be applicable on devolpent / design charges & devolpent charges are dividing per quatity product & add excise duty in issuing prodcut invice, which has issued with excise.

kindly give the suggestion on same issue
. if excise applicable on devoplent charges, it is double taxation.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

10 June 2009 Making design is not a manufacture as per the definition of Central Excise Act. Because, one design can be sold once only, you can not sale the same design, many times.
The design attract service tax under section 65 (105)(zzzzd)of the Chapter V of the Finance Act, 1994. which include designing of furniture, consumer products, industrial products, packages, logos, graphics, websites and corporate identity designing and production of three dimensional models.

Yogesh

Yogesh (Querist)
Follow

11 June 2009 Thanks for reply, But our consultant says. if you are not making diffrent invoice , you will include devolpment charges in product sale. Then price will be incresing, so you are liable to pay excise duty on prodct sale which has include devolpent charges?

because of this you will made 2 separate invoice , excise dept. loss of duty, so you will liable to pay excise on devolpent charges ?

Upgrade to CAclubindia Pro. Subscribe Now!