Replacing Scrap with Winding Wire Deemed Goods Sale, Not Service; Tax Structure Clarified, No RCM Applied.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Nature of activity - replacing the old scrap received from the customers with the already processed Winding wire, then and there, at a fixed differential price - sale of goods or service? - Applicability of reverse charge mechanism (RCM) - The Authority for Advance Ruling determined that the applicant's activity constituted a sale of goods, not a service. Therefore, the applicable tax structure was provided, clarifications were made regarding composite supply and RCM applicability, and the appropriate HSN code was specified. The ruling concluded that the applicant was not liable for RCM on purchases from unregistered persons.....