Self help group for idt

Final 823 views 6 replies

pratik jain

practicing chartered accountant

828 Points Joined December 2009

HI FREINDS !

I have passesd CA final exams last year but now i am preparing for other professional exams along with my own practice . Indirect taxes happen to be one of the subjects in my curriculum. While preparing for Ca exams i did not find IDT interesting because i could not undersatnd lot of things(written in BANGAR SIR`S BOOK) and people around me (FELLOW STUDENTS ) could not clear my doubts. As a result i realized most people dont understand the subjects properly(still dont admitt it !) but still manage to pass (including me!!) by covering recent case laws and amendments(ppl mug up even without understanding).

i also followed the same strategy and bingo!! i got 68 marrks in IDT. But now when i picked up the subject (and studied without any pressure of clearing 8 papers) i realized lot of things have changed ( i mean amendments) and i dont even know the basics properly.

For last 15 days every night i have spent a few hours researching on various topics from net and several refernce books. I found it funny that even so called experts on ONLINE FORUMS provided confusing answers(in case u get reply), board of studies of ICAI has not answered yet and books like BANGAR donot have examples to illustrate simple concepts like interest on late payment of excise duty (SEC 11 AA) .

I do not want to criticize anybody . Nor do i intend to become an expert in IDT. I just wana understand at least the basics of provisons given in book with examples (like VG sir`s module ). So that i can enter the practical world with some confidence and donot have to mug up most of things . I am sure passing the exams also becomes easier when you know the concepts and practical aspects rather than the law itself ,because learning becomes fun!

So i request all CA Final students to Post their Queries/ Replies here regarding IDT .Those who are taking tutions may forward the queries to respective tutors and clear the same for others (ya ! i am expecting a lot from others!!).

For those who think this idea is crap ! plz donot reply.

If you agree with me do reply!

I will start posting my doubts(with probable solutions) in my later posts.These may be doubts of other student`s as well.

So let us come together and help each other!

bye 4 now!

Replies (6)

CA Dimple Thacker

It's Never Too Late

506 Points Joined June 2012

Good Initiatvie taken by you on this subject.

Back in the Game

1273 Points Joined February 2012

I agree to this its better to create a community rather than keep posting in a thread...

Guest

ya even i agree but plz let it b a thread not a community,coz as anyone wud reply v can b updated thru our mail,but in case of community one needs to chk everyday as v. dont get the notification in mail abt reply in community.

but sir how did u manage to get 68?which book did u refer?

pratik jain

practicing chartered accountant

828 Points Joined December 2009

HI folks thanks for your response.So far i have covered central excise portion and have a few doubts (and their probable solutions as well).

My first query came when I was studying MRP BASED VALUATION (sec 4A) under central excise.

As per some books MRP based provisions a do not apply when goods are sold in wholesale packs.Let me clarify

-even if the article is covered under schedule III of CETA (basically it contains around 100 items like biscuits ,toothpaste etc NOTIFIED u/s 4A on which valuation is done based on MRP less ABATEMENT %.)

-but if it is supplied in bulk to large buyer not in retail

- then MRP provisions do not apply (CBEC CIRCULAR NO 625/16/02 DT 28.02.2002)

Actually this leads to only one conclusion and that is If a manufacturer of say biscuit( or any product mentioned in Schedule III of CETA ) clears /sales his goods in a bulk pack( like carton carrying 100 small packets of biscuits each having MRP rs 5) then he is liable to pay duty on transaction value of that bulk pack( price at which he sales to wholesaler say Rs 400) and not at Rs 500( 100 X 5) less abatement .

My only doubt left was then what is relevance of MRP based valuation ? Becoz all most all manufacturers clear their goods to intermediaries/wholesalers in bulk packs .Moreover for applicabilty of sec 4 A there has to be a statutory requirement under LEGAL METROLOGY ACT 2009 ,which is makes it compulsary to print MRP on the pack .Then only sec 4A gets attracted. In case of wholsale packages there is no statutory compulsion to affix MRP under LMA 2009 then how does question of MRP BASED VALUATION u/s 4A arise? please correct me if i am wrong and come up with ur vluable feed back and replies!