pavan (Private) (222 Points)
15 December 2015DETERMINE THE BASIS OF VALUTION UNDER SEC4 OR SEC 4A OF THE CEA 1944 IN FOLLOEING CASES CITING CASE LAW WHENVER APPLICABLE
A)PACKGED PRODUCTS WITH MRP PRINTED /MARKED THEREON EXPORTED TO NEPAL
B)ICE CREAMS SOLD IN BULK TO HOTELS.
HOW TO ANS THIS QUSTN???
THANK YOU
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 16 December 2015
Under the law there is an exclusion for MRP based valuation for exported goods. Further that whne goods sold in bulk for captive consumption, it is not covered under the Legal metrology Act ( earlier standards weights and measures act).
It should be ensured in the second case that it is not in retail packs and if in standard sizes to contain the comment that - not for retail sale.
In both cases above it wouldbe on transaction value under sec. 4 and not under sec 4A.
CAclubindia
