Mis. expenses charge in excise invoice

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2015 we are mfg. of pump excise able unit we have made excise invoice under excise rule. we have charge Basic value (Asses able value) + Packing Charge + Excise duty+ Vat Value than after we have charge Fright Outward Charges (Local Tempo Charges) in invoice by Mistake we have mention "Mis. Expenses Charges - sales" wording in invoice. it is local Tempo Charges collect in invoice from party which is we have paid on b/h our sales party.

my point is can i collect the fright (Local Tempo Charges) on b/h of our sales party and we charges in our invoice after basic value+excise+vat (NT. :- we are not paid excise on fright Charges which is mention in invoice wording "Mis. Expenses Charges - Sales" actually it is Fright outward Charges) and if we mention in invoice "Fright Outward Charges - Sale" we are not collect excise on "Fright Outward Charges - Sale" department said you have pay excise on Fright Outward Charges.

We have not Charges excise of Ledgers which is we have mention in Invoice
(we have alternate show in both ledger we can not show both ledger in single invoice)

Fright outward Charges - Sales
Mis. Expenses Charges - Sales

Devang Shah
9904779686

ANIL JANGID

ANIL JANGID (Expert)
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17 December 2015 no need to pay excise duty on freight out ward if sales is ex factory price.mateial risk in transit will be in party account.

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2015
Sir Thx for reply Mr. Anil Jangid

we here some clarification regarding issue. we are shown in excise invoices two ledger "Freight outward expense - sale" and "Mis. Expense - sales" under SALES head in P&L A/c and we collect the said ledger amount which is charge after excise duty and Local Sales tax amount. (Note :- Both ledger are not show in any singal invoice we are aulternate show in invoice). secondly, we are charges in invoice said ledger and payment cash to our local tempo charges which we have mention in invoice. The CERA audit ask the question why y are not paying duty on said Both a/c which we have charges in invoice without excise duty.

Pl. any circular/notification or judgment any rules we are not charges the duty which is you have mention earlier reply.
which basis we have convince to the CEAR Audit office.

Thx.
Devang Shah

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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19 December 2015 If outward freight charges are includes in the assessable value of the goods then after payment of service tax you can take the cenvat credit on outward freight.

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 Thax for Rply

sir my point is not service tax issue we are mfg. unit we take cenvate credit and issue sales invoice and pay excise duty at this stage we have charges said both ledger after Ass. Value + Excise duty 12.5% + Vat 4% than after we have charges amount in excise invoice.
exmp. 1. Ass. Value 1000.00
Excise 12.5% 12.50
Total 1012.50
Local Vat 5% 50.63
Total 1063.13
Mis. Expense charges- sales 300.00
Total Value 1363.13
2.
exmp. Ass. Value 1000.00
Excise 12.5% 12.50
Total 1012.50
Local Vat 5% 50.63
Total 1063.13
Freight Outward Charges - Sales 300.00
Total Value 1363.13

We are not pay excise duty on Both Ledger which charges 300 Rs. we are pay to our local tempo man from our factory gate to transport godown which is we collect the party in invoice.

my query can i pay excise duty said amount i.e. 300

Deang

ANIL JANGID

ANIL JANGID (Expert)
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20 December 2015 No need to pay excise duty if you collect from party.

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2015 Thax for Reply
Mr. Anil jangid

sir which section or any notification / circular / rules / judgment pl. reply to us

devang shah

ANIL JANGID

ANIL JANGID (Expert)
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20 December 2015 In this connection, I wish to refer the most recent decision of the Hon’ble Supreme Court in the case of CCE, Mumbai-III v/s EMCO Ltd. reported in 2015-TIOL-163-SC-CX (matter was heard on July 31, 2015) wherein it is held that charges of outward freight and insurance are to be included only when such charges are incurred before the “place of removal”. Thus, if such charges are incurred after “place of removal” of manufactured goods, then in that case, such charges are to be excluded from “Transaction value”. - See more at: http://taxguru.in/excise-duty/excise-duty-freight-insurance-charges-recovered-separately.html#sthash.NFBYhzmk.dpuf

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