Dear friends ,
I have been working in a Service Providing Company. I dont have clear idea in the subject like Excise and VAt .
I like to get the following matter clear .
suppose a Manufacturing company has purchased an Item valuing as follows .
| value of goods | 10000 |
| add : packing | 250 |
| assessable value | 10250 |
| excise duty @ 12.36% | 1266.9 |
| total | 11516.9 |
| add vat @ 4% | 461 |
| value of invoice | 11978 |
Now the company making value addition with the aforesaid item purchased .
Now , after value addition , Company is selling its product to two different customer ( either / or ) .
May be within West Bengal or to outside state.
if Invoice made to Customer within West Bengal :
| value of goods | 15000 |
| add : packing | 250 |
| assessable value | 15250 |
| excise duty @ 12.36% | 1884.9 |
| total | 17134.9 |
| add vat @ 4% | 685 |
| value of invoice | 17820 |
*** Here value of Goods includes component of Excise and Vat previously charged by the seller of the goods .
if Invoice made to Customer outside state :
| value of goods | 15000 |
| add : packing | 250 |
| assessable value | 15250 |
| excise duty @ 12.36% | 1884.9 |
| total | 17134.9 |
| add CST @ 2 % | 343 |
| against C Form | |
| value of invoice | 17478 |
Kindly suggest
1) the Accounting Entry for the whole transaction
2) Tax Incidence ( Excise and Vat and CST ) .
If , any Insurance and forwarding Charge is there would it put any impact on Accounting as well as Taxability ?
Regards ,
Debashis Banerjee .
CAclubindia
