DEAR EXPERTS,
WHAT WILL BE THE ASSESSABLE VALUE FOR CALCULATE THE EXCISE DUTY. WILL WE INCLUDE FREIGHT CHG. IN ASSESSABLE VALUE . PL PROVIDE ANY NOTIFICATION OR CLERIFY.
Arun Kumar Singh
(GST Advocate)
(15203 Points)
Replied 29 July 2012
Service tax will be charged on freight.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 30 July 2012
RULE 5. Where any excisable goods are sold in the circumstances specified in clause (a) of sub-section (1) of section 4 of the Act except the circumstances in which the excisable goods are sold for delivery at a place other than the place of removal, then the value of such excisable goods shall be deemed to be the transaction value, excluding the cost of transportation from the place of removal up to the place of delivery of such excisable goods.
Explanation 1. - “Cost of transportation” includes -
(i) the actual cost of transportation; and
(ii) in case where freight is averaged, the cost of transportation calculated in accordance with generally accepted principles of costing.
Explanation 2. - For removal of doubts, it is clarified that the cost of transportation from the factory to the place of removal, where the factory is not the place of removal, shall not be excluded for the purposes of determining the value of the excisable goods.
https://www.cbec.gov.in/excise/cxrules/cx-rules-valuation.htm
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service tax is also payable on such freight
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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