06-15-2007, 11:41 PM
Your qustion that in what context I am enquring is worth asking. But there may be a genral context, I mean just to describe whether he is a manufactures, or service provider or commision agent. I guess the only answer should be manufacturer.
Furthermore, in my point of view such enterprise's Return of Total Income should also describe it as a manufacturer and it will be taxed accordingly.
No doubt, it is exluded from manufacturer cum exporter in Sales Tax Act, however, this exclusion is for some specific purpose.
On the basis of what you have said we can conclude that to be a manufacturer one does not necessarily need to have manufacturing facility. However, looking in same context at some enterprises having production facility may not be considered as manufaturers. I mean those who takes material from other companies, process it, return it to them and earn income for provision of their services. I guess such companies are service providers. If we see some real examples there are some large textile units doing the same, I wonder whether they are classified as manufacturers or not?
Furthermore, in my point of view such enterprise's Return of Total Income should also describe it as a manufacturer and it will be taxed accordingly.
No doubt, it is exluded from manufacturer cum exporter in Sales Tax Act, however, this exclusion is for some specific purpose.
On the basis of what you have said we can conclude that to be a manufacturer one does not necessarily need to have manufacturing facility. However, looking in same context at some enterprises having production facility may not be considered as manufaturers. I mean those who takes material from other companies, process it, return it to them and earn income for provision of their services. I guess such companies are service providers. If we see some real examples there are some large textile units doing the same, I wonder whether they are classified as manufacturers or not?
