Calculate exicise duty

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shamita mayekar (Querist)
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09 April 2017 Revati Industries has a factory at Lonavala and two branches at Vapi and Silvasa. The goods are produced at a cost of 170 per unit. The transport cost to Vapi is 35 per unit and to Silvasa are 30 per unit.
Profit @20% on cost is added.
During March 2015, quantity manufactured was 25000 units. Out of this 7500 units were sent to Vapi and 6500 units were sent to Silvasa.
The sales during month were:-
a) Lonavala 9000 units to Local customer
Lonavala 2000 units to overseas buyer
b) Vapi 6500 units to local customers
c) silvasa 5500 units were captively consumed. Calculate excise duty payable @12.36%.

shamita mayekar

shamita mayekar (Querist)
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11 April 2017 Please someone answer my query

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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18 July 2024 To calculate the excise duty payable by Revati Industries, we need to determine the assessable value of goods manufactured at each location and then apply the excise duty rate of 12.36%.

Let's break down the calculation step-by-step:

### Step 1: Calculate the Manufacturing Cost per Unit
Manufacturing Cost per Unit = Cost of production + Transport cost to respective branches
- Cost of production per unit = ₹170
- Transport cost to Vapi per unit = ₹35
- Transport cost to Silvasa per unit = ₹30

**For goods sent to Vapi:**
Manufacturing Cost per Unit to Vapi = ₹205

**For goods sent to Silvasa:**
Manufacturing Cost per Unit to Silvasa == ₹200

### Step 2: Calculate Assessable Value
Assessable Value is the value on which excise duty is calculated. It includes manufacturing cost plus any other charges up to the place of removal (factory gate in this case).

**For goods sent to Vapi (7500 units):**
Total Assessable Value to Vapi = Manufacturing Cost per Unit to Vapi * Quantity sent to Vapi
Total Assessable Value to Vapi = ₹1,537,500

**For goods sent to Silvasa (6500 units):**
Total Assessable Value to Silvasa = Manufacturing Cost per Unit to Silvasa * Quantity sent to Silvasa
Total Assessable Value to Silvasa = ₹1,300,000

### Step 3: Calculate Excise Duty
Excise Duty Rate = 12.36%

**Excise Duty Payable on goods sent to Vapi:**
Excise Duty to Vapi = Total Assessable Value to Vapi * Excise Duty Rate
Excise Duty to Vapi = ₹190,071

**Excise Duty Payable on goods sent to Silvasa:**
Excise Duty to Silvasa = Total Assessable Value to Silvasa * Excise Duty Rate
Excise Duty to Silvasa = ₹160,680

### Step 4: Total Excise Duty Payable
Total Excise Duty Payable = Excise Duty to Vapi + Excise Duty to Silvasa
Total Excise Duty Payable = ₹350,751

Therefore, the excise duty payable by Revati Industries for the goods manufactured and sent to Vapi and Silvasa during March 2015 is ₹350,751 at the rate of 12.36%.

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