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Excise doubt

jim (abc) (309 Points)

31 October 2011

Hi. What does F.O.R contracts means in rule 5, valuation rules, of the central Excise???

Rule 5 is like F.O.R price - freight.

Thanks...

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CA. Raja Sekhar N (Chartered Accountant) (3004 Points)
Replied 31 October 2011

F O R contract means Free on road Contract. The price of goods is inclusive of freight from factory to buyer place. In F O R Contract the sale of goods will complete only when buyer receives the goods and acknowledges the goods.The risk will be on seller till goods reaches and acknowledges by buyer

The other type of contract is FOB (free on board) Contract where sale will compete at seller place.

As per valuation rule 5. value of goods for excise will be FOR price less freight.

refer my IDT charts/notes available in site for detials and examples.

good wishes

CA N.Rajasekhar

Chennai

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jim (abc) (309 Points)
Replied 31 October 2011

Thank you sir...

I do have your IDT charts, they are quite helpful...

Good Day..

seema sahu (article) (75 Points)
Replied 01 November 2011

Dear Sir,

I am student of PCC and I really need help about my presentation. Can you guide me.If possible please guide me about presentation in each paper of PCC ,also about whether I use Blue & Black Ink together or not,for matter and highlight of points respectively.

Thanks