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Excise valuation rules

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annmary

84 Points Posted on 22 January 2013

Hi all,I have two doubts regarding valuation Rule 4&5 of Excise.Kindly help me in this regard.

RULE4:

Q1)P&Co gave away 4 units of goods manufactured by them as free samples on 1/1/12.On 31/12/11 20 units were sold by them at Rs19400P.U and on 30/12/11 28 units were sold at Rs19500P.U. What is the assessable value?

I feel the answer should be 19500*4units-78000,since as per Rule 4 we should select the GAQ(greatest Aggregate Quantiy).Whereas in one of the reference books it is shown as 19400*4=77600. Kindly help as to which is the correct answer?

RULE5:

Q2)ABC Co have sold goods manufactured by them at transaction value for Rs15400.For home delivery of the said goods,they charged an additional of Rs1000 but the actual cost of transport from factory to the place of delivery was Rs600.what will be the assessable value?

Should we add 1000 to Rs15400 and then reduce the actual cost incurred(Rs600). ?

Expecting replies.

Thanks in Advance

Annmary

Replies (1)

shivani

consultant

122 Points Posted on 22 January 2013

hi -Elaborate the question.

Bascially ED will be charges on Cost of material +TPT (if shown actuval value in invoice) other wise do not add tpt in invocie Dirctly Collecte ED only on cost of goods and issue the invoice OR Show packing and forwarding charges (actuval + addln.cost)