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Excise Duty Change 8% to 10%-On what Excise New Invoice

vipin (Leader-VSS/Industrial) (25 Points)

01 March 2010

Hi All

Please advise

Company A (Manufacturing Comapny In Tamil Nadu) has some company owened warehouse in (Andhra Pradesh). Now there is some stock which is billed from factory at 8% & after budget decleration excise has changed to 10%.

Now question is ? when he will make the invoice for subsequent material (on excise 8%) from warehouse within Andhra Pradesh which excise 8% or 10% will be applicable.

Please inform & if any notification is avaliable for the same.

Please Respond........any experts..?

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5 Replies

satya (Executive Excise) (1839 Points)
Replied 10 March 2010

Dear Vipin,

If ur client having a warehouse in Andhra Pradesh, on the Fresh Invoices they have to raise duty as 10% only.

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CHIRAG THAKAR (CA Final) (26 Points)
Replied 13 March 2010

After the budget announcement, all invoices will be raised after adding the Duty of Excise @ 10%.

vipin (Leader-VSS/Industrial) (25 Points)
Replied 14 March 2010

But tell me how the diffrential ED to be accounted.

As the material initially billed from chennai to AP @ 8% & was under storage & later on only excise duty change was announced on 26 feb 2010 from 8% to 10%.

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 15 March 2010

If the goods has been removed from the manufacturing unit under excise Invoice before budget then naturally subsequent change in duty will have no impact, but if the goods has been removed from the factory to warehouse without payment of duty then after the budget 10% duty will be applicable.