service tax or excise duty on hi-seas sales and purchase

[Asked by Guest]

Respected Sir

we are manufacturer with export and import material.

now my question is hi-seas activity is lying in our plant under import material..

excise auditor told me for service tax or excise duty on cost of hi-seas purchase.

so it is correct or not ? for above any tax.

thanking you in advance.

[MUKUND THAKKAR]

Trading activity is exempted as per service tax so need not pay service tax and excise is not in question because you just sales goods on high sea sales. so goods are released by your customer from custom by paying appropriate custom duty

AI Summary

Service tax exemption on trading activity means no service tax on hi seas purchases, excise not engaged.
Service tax exemption applies to trading activities, so hi seas sales do not attract service tax on the cost of hi seas purchases. Excise duty is not triggered because a hi seas sale is a commercial sale of goods, and the buyer releases the goods from customs by paying applicable customs duty.