We are Manufacturer of Material Handing System Like Conveyors. We will get the orders from our clients as turnkey basis for the entire system. In this system we will manufacture some of the goods in semi finished condition as per our design in our factory premises, some of the goods bought out components (BOC) like motor, gear box and bearings we will buy various places in India as per our design specification. We are bringing BOC to our manufacturing unit, doing testing and sending to customer along with our semi finished product. In this process we are getting Cenvat Credit on BOC items and we are availing. At our client premises we will assemble all the components and commission the system.
In view of above process, 1) are we eligible to do trading activity for the BOC items (sending to customer directly from supplier place) ? 2) is there any complication from Excise, Service and Sales Tax 3) Whether we need to do any sort registration
Kindly sugguest.
CAclubindia
