Dutiability of site-related activities:

 

Tax is charged if all 4M are satisfied

  1. Movable

         Goods developed should be capable of being moved without dismantling 

  1. Marketable

          Goods must be capable of being sold 

  1. Manufacture

          A new and unique product should arise

  1. Mentioned in CETA

         The rates of duty on goods must be mentioned in CETA

 

Example

1. Whether Excise duty chargeable on lifts and escalators?

    No , as they are immoveable items and hence not excisable goods

 

2. Group of machine assembled to make new machine. This new machine fixed to earth to ensure vibration free movement.

   Yes, as Goods are, moveable, marketable and process amounts to manufacture. Duty is applicable if rates are mentioned in CETA

  1. Indirect Tax
  2. Excise
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
Jail