14 June 2013
Excise duty is charged on the cost of the manufactured goods but this cost includes custom duty .. So do we deduct the amount of duty from the cost ? If not, wont it be paying tax on tax ?
15 June 2013
If you are claiming duty drawback for customs then it wont be included in cost of goods. Otherwise custom duty is included in cost of goods as one cannot take credit of custom Duty against exisce duty payment. So there is cascading effect i.e. tax on tax
CAclubindia
