Page 1 of 22 Email: info@calearning.in Tollfree number: 1800 120 0560 Website: www.calearning.in
CA FINAL, INDIRECT TAX LAWS
Suggested Answers for
May, 2016 Exam
Q1.(a) Divine Ltd. manufactures product K which is a notified product under Section 4A of the
Central Excise Act, 1944. The output for the month of October, 2015 was 8,000 units out of
which 6,000 units were consumed captively. Abatement permissible under Section 4A of
Central Excise Act is 20%.
From the following information provided by Divine Ltd. for the month of October 2015.
Calculate the excise duty payable. (5 marks)
Cost of direct materials (includes Central Excise 18,800 duty
X