Vijay Chitte (Service) (173 Points)
06 June 2008Dear Sir,
Manufacture of branded / packaged software are leviable to excise duty @ 12% vide notification 12/2008.
My query is: If we manufacture a branded software in one time and this software will sell to different our custumers, IN EVERY INVOICE, WE HAVE TO CHARGE EXCISE DUTY OR FOR ONLY FIRST CUSTUMER WE HAVE TO CHAREG? becuase only one time this software will manufactured and sell the said software to different customers.
Please clarify
Regards
Azmathullah Khan
(Accounts Manager)
(1386 Points)
Replied 06 June 2008
Excise will charge on bill raised. UR question is good, must understand by the IT Dept.
Also Please send the details with refrence to GO/notification
Vijay Chitte
(Service)
(173 Points)
Replied 07 June 2008
Dear friends,
First we will mfg a one software, and sell the same to a customer with charging Excise duty as per the notification 12/2008. Now another customer also want to buy the same software which we have alread been manufactured and also paid the excise duty on the same.
My questiong is :
We have already been paid the excise duty on software manufactured Why we have to also charge the excise duty in every billing time?
Excise duty can not be levy twice on the same product.
Please clarify this issue.
Please guide us.
Ramya
(cafinal student)
(107 Points)
Replied 07 June 2008
hai,
Nice question. But main thing is only once software is created. And its put on a media and sold it becomes a manufacture. Hence excise duty levied for the first time and sold to first customer. But for the next time of sale it is copied on to another Cd/Disk which is again a new media..... So for each and every new customer it is a new media when it is copied and sold. So EXCISE DUTY IS LEVIED FOR EACH AND EVERY CUSTOMER SEPARATELY AND BIILED.
But practically, the software producers do the following thing:
Excise duty is levied at point of sale and to be specifically mentioned in the invoice just like sales tax and not only for the first time.
With regards
Ramya
Ramya
(cafinal student)
(107 Points)
Replied 07 June 2008
hai,
Nice question. But main thing is only once software is created. And its put on a media and sold it becomes a manufacture. Hence excise duty levied for the first time and sold to first customer. But for the next time of sale it is copied on to another Cd/Disk which is again a new media..... So for each and every new customer it is a new media when it is copied and sold. So EXCISE DUTY IS LEVIED FOR EACH AND EVERY CUSTOMER SEPARATELY AND BIILED.
But practically, the software producers do the following thing:
Excise duty is levied at every point of sale and to be specifically mentioned in the invoice just like sales tax and not only for the first time.
With regards
Ramya
CAclubindia
