Dear Sir,
Excise duty is applicable or not in case of a Readymade garment manufacturer, who mainly exports the good. Also they sale locally scraps and rejected items.
please advise.
prakashku1989 @ gmail.com
9899976114
CA Prakash Kumar Jha (Chartered Accountant) (39 Points)
14 April 2016Dear Sir,
Excise duty is applicable or not in case of a Readymade garment manufacturer, who mainly exports the good. Also they sale locally scraps and rejected items.
please advise.
prakashku1989 @ gmail.com
9899976114
Venkatanarayana GM
(Partner associate at Hiregange & Associates)
(1279 Points)
Replied 17 April 2016
Dear Mr. Prakash,
There is no levy of Central Excise on exports provided if you follow certain procedure as prescribed in 42/2001 CE
Secondly, on scrap which is sold locally, excise duty would be attracted provided if it is a excisable goods and arising out of manufacturing activity.
Thirdly, on rejected items you need to follow Rule 16 of Central Excise Rules, i.e is to say you would have paid on MRP when goods removed, if you have taken credit when it is rejected, then Rule 16 applicable or if you have not taken credit of it then you may sell those goods by paying normal sales tax
Venkat
venkat @ hiregange.com
962116162
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