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 and VAT/CST applicability depends on the MRP regime; MRP provisions apply, otherwise general valuation rules govern liability. Manufacture of packaged food products (sauces, pickles, jams) attracts Excise and VAT/CST liability. If products fall under the MRP regime, the MRP-specific provision (Section 4A) applies; otherwise the general valuation provision (Section 4) read with the rules determines excise liability and tax computation.