IDT Summary Notes : Excise Basics

(Cover whole of the Service Tax) Basics Negative List Approach Exemption / Abatement List Declared List of Servises POT / POP Rules Cover all calculation based sums, practice them Read & summarise Case law from Institutes Select case law book Read ALL Relevent amendments CENVAT Credit Rules Valuation Rules Penalty / Interest Basic Central Excise Rules Must do area Author: conta ct: a na ndvka bra @gma il.com fb/Ana ndVKa bra Discla ime r: This Note s a re for Re vision & Re fre nce purpose only; Vie w s e x pre sse d he re in a re pe rsona l opinion; Efforts ha ve be e n ta ke n to e le mina te e rror, ple a se sugge st corre ctions if a ny re quire d; This is a small complimentry contribution at my end to make the hudge subject digestiable! Wishing you a very Happy Reading & Good Luck! Created by Unlicensed Version Created by Unlicensed Version Created by Unlicensed Version India (please ref Defination given on the next Page) CUSTOMS Fore ign Countrie s EXCISE DUTY SERVICE TAX Payment of Excise Duty is required at the time of Removale from the Factory / W arehouse/ Agents Place as the case may be Payment of ServiceTax required to be made after calculating Point of Taxation as per POT Rules to be made anandvkabra@gmail.com Created by Unlicensed Version Created by Unlicensed Version All States including J & K Exempt Goods Exempted by CG NN 1/2011 & 12/2012 Can be moved to another place without dismentaling & major damage Created by Unlicensed Version Created by Unlicensed Version if Immovable, No Excise Duty Payable movable, goods, Liable for Excise Immovable, Not Goods, Not Liable for Excise Duty i.e. Lift, escalators, Water treament plant movable, goods, Liable for Excise movable, goods, Liable for Excise Examples for Goods anandvkabra@gmail.com Created by Unlicensed Version Created by Unlicensed Version Created by Unlicensed Version Valuation Of Excisable Goods Methods / Ways of Valuations or u/s 4(1)(a) Actual (value accepted subject to u/s 4(1) u/s 4A(1) Legal Metrology Act,2009 u/s 4A(2) Value = MRP *Abatement u/s 4A(3) No other Retail Sales Price u/s 4A here, Value = Assessable Value (to be calculated by following mechnism) anandvkabra@gmail.com Created by Unlicensed Version Created by Unlicensed Version Created by Unlicensed Version is Fixed u/s 3(2) CEA, 1944? Notional Value or Y Are Goods subject to MRP & Valuation u/s 4A, CEA,1944 MRP * Abatement N Valuation u/s 4, CEA, 1944 "TRANSACTION VALUE" Y N Valuation Rules: Central Excise (Determination Of Retail Sales Price of Excisable Goods) Rules, 2008 Rule 4: If Goods are Removed without Declaration of MRP; MRP, can not be recognized; MRP, obliterated then Value of such goods shall be 1) MRP of Identical Goods, or 2) MRP of Identialcal goods in Market removed at the same time Rule 5: Highest MRP should be considered Conditions to for Application of Sec. 4(1)(a) (all conditions shall be complied, if not Rule no is given against the condition shall be Applicable for valuation) Assessee Sold Goods (Rule 4) For Delivery at the Time & Place of Removal (Rule 5) Buyer & Seller are Not Related Parties (Rule 9) Sales price is the only consideration (Rule 6) If any one of the above Conditions of then Determine "Transaction Value" u/s 4(1)(b), by Appling The Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 Author's Note: Same Mechanism shall be applicable in case of ImportedGoods while calculating CVD 3(1)anandvkabra@gmail.com Created by Unlicensed Version Created by Unlicensed Version Created by Unlicensed Version