Legal Question in Tax Law in India

We are getting the components manufactured by our vendors as per the drawings submitted by us. After manufacture, the vendor will supply the same to us with his sale bill indicating the price + ED + Tax. Is it necessary to add the cost of drawing supplied by us for manufacturing the components ? We are not charging any thing for the drawing.


Asked on 9/23/09, 3:03 am

1 Answer from Attorneys

Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

If the manufacturer is not paying any amount towards the drawing expenditure then he is not allowed to claim the same from the purchaser(i.e.your company) it is illegal also,you may file a petition against the manufacturer a complaint u/s 420 IPC for cheating,if you can prove that the goods the manufacturer is supplying is made as per your drawings.

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Answered on 9/23/09, 4:27 am


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