Mrp base valuation & invoicing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2013 In present budget 2013
MRP based valuation for pharma - Ayurvedic product is applied with 35% abatement.
For eg MRP Rs.100/- now valuation is Rs.100-35= 65/- per pack for excise clearance.

In above case manufacturer " A" mfg at full rate by SSI unit at Rs.10/- (with MRP Rs.100/-) and same is given to "B" at Rs.10/-by manufacture "A", who sold at Rs.100/- by "B".

Now at what rate "A" continue to invoice at Rs.10/- or Rs.65/- to "B" w.e.f 1.3.2013. or at what excise invoice is to be prepared at Rs.65/- or Rs.10/-

Pls advice.

Suhas

Arun Kumar Singh

Arun Kumar Singh (Expert)
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10 March 2013 SSI unit can avail exemption limit upto the 1.5cr. If manufacturer can cleared the goods under MRP based then after abatement value will be count for SSI exemption. If Manufacturer can cleared the goods under assessable value, abatement abatement will be not available.