Sir/Madam,
If a manufacturing company distributes some manufactured goods to its employees as gifts,what will be the excise liability? How it should be treated in accounts?
3 Replies
Mihir Doshi
(B.Com, CA, CS, LLB)
(2187 Points)
Replied 23 March 2012
Central Excise Valuation (determination of price of excisable goods) Rules, 2000
Rule 4: The value of the excisable goods shall be based on the value of such goods sold by the assessee for delivery at any other time nearest to the time of the removal of goods under assessment, subject, if necessary, to such adjustment on account of the difference in the dates of delivery of such goods and of the excisable goods under assessment, as may appear reasonable.
Valuation as per the rule 4 and adjustment will be done according to the timing difference if significant.
Keval Ponkiya
(CA CS MBA(Fin.) M.Com. L.L.B.)
(223 Points)
Replied 23 March 2012
When the goods are distributed to employees as gift there is no excise duty as there is no valuation and there is no consideration as per the definition of transaction value.
So, no duty of excise and accounting would be same as free samples.
Rakshit
(practising)
(338 Points)
Replied 24 March 2012
Excise duty is on manufacture, hence you have to pay duty, irrespective of goods are to be distributed free.
Raksh*t Verma
Recent Topics
- Political party donation under 80 GGC
- Self assessment tax paid during scrunity 143(2)
- Need inputs for my MBA Project (Accountant tools)
- GTA UNREGISTERED DEALERS
- GST ON IMPORT OF LEGAL SERIVCES
- JOB WORK OR SUPPLY OF GOODS
- Need ITAT appeal drafting services
- Section 10(14) exemptions
- UPI Transaction May Stop If Your App Does Not Foll
- ACCOUNTING ENTRY UNDER GST SECTION 17(5)(H)
Related Threads
Trending Online Classes
-
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Industry Expert04 February 2025
CAclubindia
