TMI BlogService tax on Tools and DiesX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, If I manufactures the tools and dies on customised basis, suppose My customer provides me the drawing and specification of tools and I procures raw material at my end and manufactures the tools and dies. And My customer will approve the Dies after testing process and modification, if required. Please suggest me whether this is a Works Contract and chargeable to Service tax OR cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red under Central Excise as under Manufacturing Activity?? Thanks in Advance. - Reply By Rajagopalan Ranganathan - The Reply = Sir, The activity undertaken by you amounts to 'manufacture under Section 2 (f) of Central Excise Act, 1944 and hence you have to pay excise duty under Section 3 of the above Act read with the schedule to Central Excise Tariff Act, 1985 . Moreover you have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to add value of drawing supplied by your customer in the transaction value of the tools manufactured by you. - Reply By KASTURI SETHI - The Reply = Tools and dies are excisable goods falling under Chapter 82 (8207) of Central Excise Tariff Act, 1985 . The manufacture of these goods will attract Central Excise duty. Conditional exemption is available to some goods of Chapter 82 under Gener ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Exemption No.50 vide Notification No. 12/2012-CE dated 17.3.2012 as amended. Small Scale Exemption is also available under General Exemption No. 1 vide Notification No. 8/2003-CE dated 1.3.2003 as amended. - Reply By Mahir S - The Reply = Yes the views provided above by Shri Rajagopalan Ranganathan is correct. Further, you have to get a chartered certificate regarding the valuation of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tools and dies and amortize such value at the time of clearance of finished goods manufactured from such tools and dies. - Reply By Prabhakar Singh - The Reply = If you have issue invoice under modification or tool development Charges then you are liable to pay service tax. - Reply By KASTURI SETHI - The Reply = I endorse the views of Sh. Rajagopalan Ranganathan and Sh.Mahir S. expresse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in their reply dated 12.10.2015. However, here it is pertinent to mention that sometimes the assessees do not disclose the complete facts. Thus fool proof guidance is possible only with the examination of the records. - Reply By varun arora - The Reply = Thank you all Experts. - Service tax on Tools and Dies - Query Started By: - varun arora Dated:- 12-10-2015 Service Tax - Got 6 Replies - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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