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Excise duty calculation

kumar hattanna (Officer - Excise) (525 Points)

07 October 2013

Dear Experts Kindly help me to calculate duty for this tool. – Capital goods 1 We have purchase the tool on 01/05/2013 at RS.100000 with payment of duty Rs.12360 at the rate of 12.36% 2.Now we need to sell this tool our vendor for Rs. 136000 3.Kindly explain me the calculation of excise duty payment

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2 Replies

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 10 October 2013

The calculation is correct but If you are registered with central excise then you can issue the taxable invoice and buyer can take the cenvat credit on capital goods.

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Pawan Mittal (CA Final) (702 Points)
Replied 12 October 2013

Dear Kumar

Your question is not clear. Are you a dealer of the tool you have purchased or you had purchased it for your own consumption?

Moreover Excise duty is leviable only on manufacture. As you have not done any manufacturing on the tool hence you are not liable to pay any excise duty. You can simply pass on the the CENVAT credit to the vendor. For this you will have to get registered under Central Excise.