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    <title>VAT Rate for contract manufacturing</title>
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    <description>Whether manufacture of automotive transmissions under a principal&#039;s order is contract manufacturing eligible for input-rate TVAT on the purchase order value or is taxable as job work/sale attracting a higher VAT rate; facts show the supplier applied a lower industrial input VAT rate to PO value (excluding FOC materials) while the state tax authority treats the activity as job work subject to the higher output VAT.</description>
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      <description>Whether manufacture of automotive transmissions under a principal&#039;s order is contract manufacturing eligible for input-rate TVAT on the purchase order value or is taxable as job work/sale attracting a higher VAT rate; facts show the supplier applied a lower industrial input VAT rate to PO value (excluding FOC materials) while the state tax authority treats the activity as job work subject to the higher output VAT.</description>
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