VAT / CST Eligibility for Job Worker

[Sharad Sonawane]

Dear Experts

We are manufacturing Pharmaceutical Product for other companies (Job Work) at the time of dispatch we are paying Excise Duty Edu. Cess & HSC Cess as job worker VAT OR CST Applicable or not Applicable

Regards

Sharad M S

AI Summary

Exploring VAT and CST Applicability for Job Workers in Manufacturing: Key Insights and Tax Obligations Explained A discussion on the applicability of VAT and CST for job workers in the manufacturing sector. A job worker inquires about tax obligations when dispatching pharmaceutical products, paying excise duties, and whether VAT or CST is applicable. One expert advises that VAT/CST is not applicable if no additional materials are added to the supplied goods, except consumables. Another participant shares their experience in a sheet metal manufacturing unit, detailing their billing process for job work, which includes a material cost and job work amount, and seeks advice on their tax practices.