I AM RECENTLY JOINED IN A MANUFACTURING COMPANY WHERE SOME SALES ARE MADE for F.O.R(FREE ON ROAD)i.e sale of goods at factory gate for F.O.R. and paying the excise duty on F.O.R (excluding sales tax)
MY QUESTION IS AS PER RULE 5 OF VALUATION RULES freight up to the place of removal only includable but here place of removal is the factory.
19 November 2011
FOR is a term used for FOR destination (freight on Road upto the certain point of delivery destination) and its not factory gate sale.
19 November 2011
here my question is if company sell goods to the customers for FOR(not ex factory), whether FOR price/ex factory price relevant for valuation.
My doubt about rule 5 where freight up to the place of removal only includable but ownership in case of FOR sale not tranfered till goods reaches to the customer site.
1.what is the place of removal factory/customer place in case of FOR ?
CAclubindia
