Query from excise department for different value of hts wire
This query is : Resolved
18 November 2016
Kind reference to EA 2000 Audit.
It is noticed that you have shown difference values for HTS wire in the invoices raised on different months for payment of Central Excise duties. In this connection, it is requested to submit the work sheet/ details for arriving the values that were shown in the invoices. What are all the elements and their value viz. material / input cost ( steel etc.) and other elements that constituted in the invoice value. In other words break-up for the value shown in the invoices may be sent urgently.
Can any one share me format what should i reply
It is noticed that you have shown difference values for HTS wire in the invoices raised on different months for payment of Central Excise duties. In this connection, it is requested to submit the work sheet/ details for arriving the values that were shown in the invoices. What are all the elements and their value viz. material / input cost ( steel etc.) and other elements that constituted in the invoice value. In other words break-up for the value shown in the invoices may be sent urgently.
Can any one share me format what should i reply
18 November 2016
can any one share a format what should i write and reply
10 August 2024
To respond to the query from the excise department regarding the difference in HTS wire values and the breakdown of invoice values, you will need to provide a detailed explanation of how the values in the invoices were determined. The response should include a clear worksheet or breakdown of the costs associated with the HTS wire. Here’s a structured format you can use for your reply:
---
**[Your Company’s Letterhead]**
**Date: [DD/MM/YYYY]**
**To,**
**The Excise Department**
**[Department’s Address]**
**Subject: Response to Query Regarding Difference in HTS Wire Values – EA 2000 Audit**
**Dear Sir/Madam,**
With reference to your query regarding the differences in HTS wire values shown in invoices for different months, we are providing a detailed breakdown of the invoice values as requested.
**1. Invoice Details:**
- **Invoice No.**: [Invoice Number]
- **Invoice Date**: [Invoice Date]
- **Month/Year**: [Month/Year]
- **HTS Wire Description**: [Description of HTS Wire]
- **Invoice Value**: [Total Value]
**2. Breakdown of Invoice Value:**
Below is the detailed breakdown of the invoice values, including all elements that constitute the final invoice amount:
| **Element** | **Description** | **Value (Rs.)** |
|-------------------------|----------------------------------|------------------|
| **Material Cost** | Cost of Raw Material (Steel) | [Value] |
| **Manufacturing Cost** | Cost incurred in manufacturing process (Labor, Overheads) | [Value] |
| **Transportation Cost** | Cost of transportation (if applicable) | [Value] |
| **Packing Cost** | Cost of packing materials | [Value] |
| **Other Costs** | Any other relevant costs | [Value] |
| **Profit Margin** | Profit added to the cost | [Value] |
| **Total Invoice Value** | Sum of all elements | [Total Value] |
**3. Detailed Explanation:**
**Material Cost:**
- The material cost includes the cost of steel or other raw materials used in producing HTS wire. This cost varies based on the procurement price, which fluctuates according to market rates.
**Manufacturing Cost:**
- Includes labor costs, factory overheads, and other production-related expenses. The manufacturing cost might differ based on production volume and efficiency.
**Transportation Cost:**
- Reflects the cost of transporting the finished HTS wire from the manufacturing facility to the customer or warehouse. This cost may vary based on distance and logistics.
**Packing Cost:**
- Covers the cost of packaging materials and processes. It ensures that the HTS wire is properly packed for delivery.
**Other Costs:**
- Includes any other relevant costs that may impact the final invoice amount, such as special handling charges or regulatory compliance costs.
**Profit Margin:**
- The margin added to cover business profit. This percentage can vary based on market conditions and pricing strategy.
**4. Variations in Invoice Values:**
The variations in the invoice values across different months can be attributed to fluctuations in raw material costs, changes in manufacturing processes, or other external factors. Each invoice reflects the costs and pricing applicable at the time of issuance.
**5. Supporting Documents:**
Please find attached supporting documents including:
- Purchase orders and invoices for raw materials.
- Manufacturing cost breakdown reports.
- Transportation and packing expense statements.
We hope this detailed breakdown and the attached documents address your query. Should you require any further information or clarification, please feel free to contact us.
**Thank you.**
**Sincerely,**
**[Your Name]**
**[Your Position]**
**[Company Name]**
**[Contact Information]**
---
**Attachments:**
1. Raw Material Purchase Orders
2. Manufacturing Cost Breakdown Reports
3. Transportation and Packing Expense Statements
---
This format ensures that you provide a comprehensive explanation along with necessary documentation to address the excise department's query. Adjust the details according to your specific situation and ensure all supporting documents are correctly attached.
---
**[Your Company’s Letterhead]**
**Date: [DD/MM/YYYY]**
**To,**
**The Excise Department**
**[Department’s Address]**
**Subject: Response to Query Regarding Difference in HTS Wire Values – EA 2000 Audit**
**Dear Sir/Madam,**
With reference to your query regarding the differences in HTS wire values shown in invoices for different months, we are providing a detailed breakdown of the invoice values as requested.
**1. Invoice Details:**
- **Invoice No.**: [Invoice Number]
- **Invoice Date**: [Invoice Date]
- **Month/Year**: [Month/Year]
- **HTS Wire Description**: [Description of HTS Wire]
- **Invoice Value**: [Total Value]
**2. Breakdown of Invoice Value:**
Below is the detailed breakdown of the invoice values, including all elements that constitute the final invoice amount:
| **Element** | **Description** | **Value (Rs.)** |
|-------------------------|----------------------------------|------------------|
| **Material Cost** | Cost of Raw Material (Steel) | [Value] |
| **Manufacturing Cost** | Cost incurred in manufacturing process (Labor, Overheads) | [Value] |
| **Transportation Cost** | Cost of transportation (if applicable) | [Value] |
| **Packing Cost** | Cost of packing materials | [Value] |
| **Other Costs** | Any other relevant costs | [Value] |
| **Profit Margin** | Profit added to the cost | [Value] |
| **Total Invoice Value** | Sum of all elements | [Total Value] |
**3. Detailed Explanation:**
**Material Cost:**
- The material cost includes the cost of steel or other raw materials used in producing HTS wire. This cost varies based on the procurement price, which fluctuates according to market rates.
**Manufacturing Cost:**
- Includes labor costs, factory overheads, and other production-related expenses. The manufacturing cost might differ based on production volume and efficiency.
**Transportation Cost:**
- Reflects the cost of transporting the finished HTS wire from the manufacturing facility to the customer or warehouse. This cost may vary based on distance and logistics.
**Packing Cost:**
- Covers the cost of packaging materials and processes. It ensures that the HTS wire is properly packed for delivery.
**Other Costs:**
- Includes any other relevant costs that may impact the final invoice amount, such as special handling charges or regulatory compliance costs.
**Profit Margin:**
- The margin added to cover business profit. This percentage can vary based on market conditions and pricing strategy.
**4. Variations in Invoice Values:**
The variations in the invoice values across different months can be attributed to fluctuations in raw material costs, changes in manufacturing processes, or other external factors. Each invoice reflects the costs and pricing applicable at the time of issuance.
**5. Supporting Documents:**
Please find attached supporting documents including:
- Purchase orders and invoices for raw materials.
- Manufacturing cost breakdown reports.
- Transportation and packing expense statements.
We hope this detailed breakdown and the attached documents address your query. Should you require any further information or clarification, please feel free to contact us.
**Thank you.**
**Sincerely,**
**[Your Name]**
**[Your Position]**
**[Company Name]**
**[Contact Information]**
---
**Attachments:**
1. Raw Material Purchase Orders
2. Manufacturing Cost Breakdown Reports
3. Transportation and Packing Expense Statements
---
This format ensures that you provide a comprehensive explanation along with necessary documentation to address the excise department's query. Adjust the details according to your specific situation and ensure all supporting documents are correctly attached.
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