Job work of excisable item to Uttaranchal
Guest
We are selling brass strips to a customer in Uttaranchal after charging excise duty on it. We are then converting brass scrap generated from the same to finish goods for the same customer without charging excise duty or sales tax on our Jo-work charges. The customer is not paying excise duty on the goods as he is exempted. Is this correct? And if not then what can be done to salvage the situation.
Duty treatment of job work on excisable goods: clarify whether job-work charges and resultant goods are dutiable under current facts. Whether job work on excisable goods supplied to a customer in Uttaranchal is dutiable where the supplier charged excise duty on initial brass strips but did not charge excise duty or sales tax on job-work charges for converting scrap into finished goods for the same exempt customer; adviser requested clearer factual details to determine duty liability on the job-work goods and potential corrective measures. (AI Summary)
TaxTMI
TaxTMI