Dear All,
We a Manufacturing Unit Registered under the Excise Law , Manufacturing the Excisable commodity having a NIL Rated Item.
Due to capacity constrain, we have a arrangement with one another manufacturer to produce our Finished goods.
The arrangement goes like this
1) We will supply our packing material and some Formula composition to the manufacturer.
Outsourced manufacturer manufacture the FG with the Formula which we gave and pack the same with Our packing material and supply the FG to us.
My question is
1) the packing material which we supply to out outsourced manufacture is an excisable commodity, if i transfer the PM to Outsourced manufactured whether it will attract Excice duty
we are not doing any value addition in Packing material , we are getting it from the vendor and just transfering to our outsourced manufacturer.
2) Whether the same will also attract Sales tax ?
Kindly clarify
CAclubindia
