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Excise duty on bulk import and repacking in india

Vijay (Tax practisioner) (24 Points)

26 October 2011

Hello to All

WISH YOU ALL HAPPY DIWALI

Please let me know the applicablity of excise duty and its current rates on importing cosmetics / shampoos and other beauty and toiletery items in Bulk packing and re-packing it in bottles, and selling to the end users directly through its stand alone outlets on pan india basis.

So, I want to know the applicable excise duty on re-packing. I believe this type of re-packing tentamounts to manufacturing and excise duty is applicable.

If so on what price excise duty is payable ?

IS there any set off of excise duty with State VAT Payable on retail sale

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3 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 26 October 2011

repacking in consumer packs amounts to manufacture, and excise duty @ 10.3% is applicable, you can avail cenvat of CVD paid at the time of clearance from customs.

similer way the repacked goods are seperate identity from imported one, and vat rules appy for chargebility on the sale and subsequent sales.

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 27 October 2011

Repacking is manufacture for the subject goods. MRP based valuation is applicable. Excise duty is 10.3% of MRP less abatement. VAT being state law , rate as per the schedule of VAT law in your state. No set off between VAT and excise duty.

Nabeel (CA) (3288 Points)
Replied 27 October 2011

Originally posted by : CA Unnikrishnan Nair N
	Repacking is manufacture for the subject goods. MRP based valuation is applicable. Excise duty is 10.3% of MRP less abatement. VAT being state law , rate as per the schedule of VAT law in your state. No set off between VAT and excise duty.