Galvanising on Iron/steel article

[Guest]

Hi I have a subcontractor who is raising his invoice for 'Galavanising' process with excise duty. I want to know that Galvanising on Iron/steel artical is equal to Sale or it is an subcontracting process. plz provide me related notification or circular if it will a sale. regards Suminder Patial

AI Summary

Subcontractor's Galvanizing Process: Sale or Service? Excise Duty vs. VAT Explained Under Excise Rules. A subcontractor is invoicing for galvanizing iron/steel articles with excise duty, raising the question of whether this process constitutes a sale or subcontracting. One expert clarifies that excise duty applies to manufacture and removal, not necessarily sale, and VAT is applicable if there is a transfer of property in goods. Another emphasizes that galvanizing is not deemed a sale if no additional goods or value are added. It is noted that galvanizing is considered manufacture under certain excise rules, but if goods are sent under an excise challan, duty should not be charged. The distinction between VAT and excise is highlighted, with excise focusing on the transformation of materials.