Design and Development - New Product Delivered along with CD, Service Tax

[saravanan rengachary]

We are designing and developing printed circuit board based on the specific requirement of the customer.

Delivery:

Printed Circuit Board - 1 Qty and CD containing design of the product.

Query: please let us know applicable tax for this delivery.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Populated, loaded or stuffed printed circuit board is classifiable under sub-heading No. 8517 70 10 of the first schedule of Central Excise Tariff Act, 1985 attracting cenvat duty @12.5%. designing and Developing such board will amount to manufacture under Section 2 (f) of Central Excise Act, 1944. Therefore such boards are subject to central excise duty. The cost of the CD containing the design of the product shall be includible in the transaction value of such boards and duty is payable on this transaction value.

[saravanan rengachary]

Sir,

Thanks.