mrp

This query is : Resolved

Mitesh (Querist)
Follow

18 June 2016 If retailer of readymade garments set their on mrp label, is he liable to pay duty? example: on duty paid Jeans mrp with rs-1000/- he is selling with no discount now retailer want to set mrp of rs 2000/- and want give 40-50% diascont for better sale ? query is retailer liable to pay duty, retailer can do this for better sale?

Kaushik Joshi

Kaushik Joshi (Expert)
Follow

18 June 2016 Dear Mitesh, This is a very good marketing strategy. However, packing, re packing, labeling, re labeling are considered as deemed manufacturing under Sec 2(f) of excise. Hence he will be considered as a deemed manufacturer under excise and liable to excise if he crossed the limited under the act.