Excise Valueation of Finish Goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2011 We have availed cenvat credit on raw material & have produce finish goods. Our costing is arising of Rs. 115/KG. So, my question is whether i need to add 10% on this i.e as 115+11.5=126.5 & then excise duties & freight.

S.P.Mahanta

S.P.Mahanta (Expert)
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25 June 2011 Excise Duty is levied on assessable value of final product manufactured in factory.As stated, if cost of finished goods is Rs.115, excise dty leviable is @10.3%.If delivery is FOR, Freight will be extra, If del: is to consignment agent/depot/ stock transfer,Freight cost will be added to Rs.115 & excise duty @10.3% shall be charged thereafter.

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2011 This finish goods will transfer to our other units one is under exemption i.e haridwar & another is to silvassa which is comes under DTA

So, plz. note the below costing
Raw materia charges 100
Processing & Conversion 15
Total 115

Plz. suggest how to sale the goods & under which ass.value

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U S Sharma

U S Sharma (Expert)
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25 June 2011 finish goods are to be cleared on invoice value, for related person the value should be taken on the sale value on which its sold by related person to 1st point of unrelated person.

duty should be paid on the value on which the branch office will clear the FINISH goods.