06-09-2007, 08:54 PM
Dear Shoaib,
I just saw this post from u and earlier it skipped from my attention.
You have to see the definition of Manufacturer from some legislative. These could be sales tax act 1990, excise and salt act 1944, federal excise act 2005 etc for locating this definition.
As per sales tax, section 2 (117) (c) any person, firm or company which owns, holds, claims or uses any patent, proprietory or other right to goods being manufactured, whether in his or its name or on his or its behalf is a manufacturer.
However, for the sake of claiming refund of sales tax against export sales, own manufacturing facilities are must to prove a person as manufacturer-cum-exporter. If he does not hold his own manufacturing facilities he would be treated as commercial exporter.
Federal Excise law also includes such a person in the definition of manufacturer whether or not he owns his manufacturing facilities.
BLACK's law dictionery defines the word manufaturer as under
"A person or entity engaged in producing or assmbling new products"
Some American laws also include the distribution agents in the definition of manufacturer. Even some laws include the importer of goods for resale in the definition of manufacturer.
You should mention for what purpose u have to define manufacturer then some thing could be concretly concluded.
However, in my view such a person is manufacturer. (but not for the purpose of sales tax refund. for that purpose, he is commercial exporter.)
In woven textiles, GOVT has introduced the concept of R&D support and initially only manufacturers were included who have own production facilities. However, afterwards, it became an issue to match the production capacities and quality specifications of each company with R&D claims. It was impossible to ascertain/verify which shipment was from own production and which was from outsourced production. Therefore, to eliminate this mess, textile ministry afterwards, made eligible all those exporters either they have own production facilities or not as manufacturers.
This again confirms that such persons are also manufacturers.
Best regards,
Kamran.
I just saw this post from u and earlier it skipped from my attention.
You have to see the definition of Manufacturer from some legislative. These could be sales tax act 1990, excise and salt act 1944, federal excise act 2005 etc for locating this definition.
As per sales tax, section 2 (117) (c) any person, firm or company which owns, holds, claims or uses any patent, proprietory or other right to goods being manufactured, whether in his or its name or on his or its behalf is a manufacturer.
However, for the sake of claiming refund of sales tax against export sales, own manufacturing facilities are must to prove a person as manufacturer-cum-exporter. If he does not hold his own manufacturing facilities he would be treated as commercial exporter.
Federal Excise law also includes such a person in the definition of manufacturer whether or not he owns his manufacturing facilities.
BLACK's law dictionery defines the word manufaturer as under
"A person or entity engaged in producing or assmbling new products"
Some American laws also include the distribution agents in the definition of manufacturer. Even some laws include the importer of goods for resale in the definition of manufacturer.
You should mention for what purpose u have to define manufacturer then some thing could be concretly concluded.
However, in my view such a person is manufacturer. (but not for the purpose of sales tax refund. for that purpose, he is commercial exporter.)
In woven textiles, GOVT has introduced the concept of R&D support and initially only manufacturers were included who have own production facilities. However, afterwards, it became an issue to match the production capacities and quality specifications of each company with R&D claims. It was impossible to ascertain/verify which shipment was from own production and which was from outsourced production. Therefore, to eliminate this mess, textile ministry afterwards, made eligible all those exporters either they have own production facilities or not as manufacturers.
This again confirms that such persons are also manufacturers.
Best regards,
Kamran.
