Dear Expert,
1. | A Company entered into a contract |
for manufacturing of 1000 kgs of a particular | |
product with another company. | |
2. | It manufactured 1000kgs but the buyer could not |
purchase the entire quantity. | |
3. | The company raised debit note for compensation |
excluding taxes for material not purchased by it. | |
4. | The product is excisable. Amount of debit note is |
₹ 20 lacs. | |
Query is: | |
1 | Whether it is covered under declared service. |
2 | If yes, whether service tax would be levied or not. |
3 | The company is not registered as service provider |
Whether it has to get registration under service tax | |
as service provider. Please give your expert opinion. Regards, WADHWA |