Excise on freight

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2014 A Ltd. Co. makes sales of excisable goods to another company. Freight on dispatch is paid by selling
company. In consideration, another company reimburse selling company towards freight on
fixed rate basis as decided in agreement for example Rs. 4 per kg.

Query is whether excise duty would also be levied on aforesaid Rs. 4 per kg in addition to sale value.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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24 June 2014 If value of freight will be includes in the assessable value then seller can take the cenvat credit on service tax paid on freight. If freight is exclude then no need to pay excise duty.

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