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Excise duty chargeable

613 views 1 replies

Poornima Kamath

Employee

40 Points Joined June 2010

Dear All,

I am working ia a factory where electrical items like MCB, RCCBs are manufactured. I do billing in SAP.

While billing for the finished goods, excise duty is charged on ZMRP n not on MRP , i.e, in our case if MRP is Rs.100 excise duty is calculated on Rs.65 (100-35% of 100).

So can any one tell me why this excise duty is charged on ZMRP & not on MRP.

Waiting for your replies.

Regards,

Poornima Kamath

Replies (1)

Pradeep Kamath

Chartered Accountant

134 Points Joined September 2008

Hi Poornima,

Certain products can be opted for payment of excise duty based on abated MRP. This is as per section 4A of the Central Excise Act, read with the relevant notification from Central Government. Your company would have opted for valuation under section 4A.

Regards,

Pradeep.