05 February 2008
Sir, I am from Pharmaceuticals Co. Pl advice for Excise duty on Phy.Sample should paid on PRO-RATA value of retail sales Price (RSP) or PRO-RATA value of Max. Retail Price(MRP)? If on RSP , it different to state wise , which RSP should be considered? Thanks & Regards
07 March 2008
The value of physician sample is required to be determined as per rule 4 of Valuation Rules, 2000.
The value will be proportionate to the price of the trade pack. Say for example, trade pack of 10 tablets is sold to distributors at Rs.20 and the physician sample contains 4 tablets the proportionate price of 4 tablets is Rs.8/-
Thus, the assessable value of sample will be Rs.8/- The value, thus, is required to be determined on this basis.
In case you are paying excise duty on physician sample by determining the value by cost of production plus profit, you are requested to please workout the differential duty from 25-4-2005 till date and pay under protest.
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