Charging excise@12.5% on billing from depot
B K JHA (Senior Manager) (29 Points)
08 July 2016B K JHA (Senior Manager) (29 Points)
08 July 2016
natarajan
(SM - Audit & Taxation)
(156 Points)
Replied 08 July 2016
Dear sir,
You are adopting Rule 7 of CE Vauation rules for arriving the duty liability on Removal.
Whereby you are adopting the price at which the greatest aggregate qty sold based at the Sale point for discharging the Duty liability.
The final sales price will not impact the valuation done above. This will normally accepted by the Dept.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 08 July 2016
Depot Trasfer Valuation Under Rule 7- Value the goods at the time of removal ( from factory) at the price prevalent at Depot at thta time.
If you sell below the transfer price- no refund- if you sell above the transfer price- no additional duty.
Dept. cannot demand duty on the diffrential price.
B K JHA
(Senior Manager)
(29 Points)
Replied 09 July 2016
Dear Sir
thank you for reply. In current scenario ,we can only pass excise on pro rata basis ie on stock transfer price. Can we have arrangement where we can charge excise on billing price at depot at prevailing rate as normal billing Practice.
regards
B k jha
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961