inderjit (article) (145 Points)
19 March 2009Dear friends,
one of my friend is dealing in computer peripherals and he assembles computers, he wants to know that he does purchase entries as usual with inventories but at the time of sale he is making a new product with inventory voucher option (consumption and source ) and creating new PC and he is selling that, he want to know that whether excise is applicable or not?
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 19 March 2009
Excise Duty is an indirect tax levied and collected on the goods manufactured in India. it is mandatory to pay duty on all goods manufactured, unless exempted.
For example, duty is not payable on the goods exported out of India. Similarly exemption from payment of duty is available, based on conditions such as kind of raw materials used etc.
If there is a manufacturing of a distinct product from Raw material. you need to pay the same.
CAclubindia
