09 March 2010
The excise duty is paid on the transaction value and it may be lower to the cost as well. Hence duty is payable on the sale value and it can be differ from one to another. Here the duty is payable on Rs. 105.00.
In case the raw material is exempted from duty and you are not in a position to take credit, then the whole duty shall be paid in cash. There is no way if there is no credit of capital goods or input services.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).
11 March 2010
sir, in the above question: as my cost is rs. 100 & my selling price is rs. 105. that means i have surplus of rs. 5 only. than how can i pay excise duty of rs. 15 out of above surplus? is it proper?
11 March 2010
because duty is payable on the transanction value. It has nothing to do with the actual cost. very simple the duty is paid on sale price. And if sale price is less than cost, it is legal in the Central Excise Act.
CAclubindia
