Dear All,
Let me ask you all question through an example. This is with regards to case of Mr A in Karnataka.
Persons involved: Supplier in Maharastra, Mr A in Karnataka, Customer in Uttar Pradesh.
Mr A enters into a transaction with Supplier in Maharastra. He charges him Rs 3,00,000 and excise duty of Rs 24,000 on it. Mr A inturn wants the goods to be moved to Customer in Uttar Pradesh directly. So, he asks Suppler to move it to Customers premises in UP. So the Supplier prepares an invoice wherin the goods are billed in Mr A's name & Shipped to Mr Customer.
Mr A subsequently raises an invoice on Customer for Rs 5,00,000 and shows 24,000 as excise reimbursable.
The question is, Is it correct on part of Mr A to charge excise only for Rs 24,000 and not on 5,00,000 i.e. Rs 40,000?
CAclubindia
