Tax Treatment on Manufacture of food products

[Guest]

Sir

We are manufacturers of food products ( Sauces, Pickels,jams).is it applicable to excise duty,Service tax & sales tax, if applicable how to arrive the tax liability on food products.

[YAGAY andSUN]

In this matter Excise and VAT/CST would be applicable. If the same fall under MRP regime then Section 4A would be applicable otherwise Section 4 read with Rules made thereunder.

AI Summary

Excise Duty and VAT/CST Apply to Food Products; Section 4A for MRP Regime, Otherwise Section 4 Rules Apply. A query was raised regarding the tax treatment applicable to the manufacture of food products such as sauces, pickles, and jams, specifically concerning excise duty, service tax, and sales tax. The response clarified that excise duty and VAT/CST are applicable. If the products fall under the Maximum Retail Price (MRP) regime, Section 4A applies; otherwise, Section 4 and the related rules are relevant.