( Author )
21 July 2012
Please solve the below mentioned Indirect Tax problem;
Ventex ltd, sold a machinery to texmeco on 28th September 2011 and the price of the machinery when it was removed from the factory at Hyderabad on the date of sale was Rs. 4 lakh. The rate of exciese duty applciable is 10.3%( inclusive of EC & SAHEC) on the date of removal.
'Texmeco ltd' however, refused to take delivery of the machinery when it reached their destination.
Subsequently 'Ventex ltd' increased the prices of similar type of machinery to Rs.4.50 lack with effect from 1st October 2011. The machinery as refused by 'Texmeco ltd' has been sold on 3rd October 23011 to 'Voith ltd' at the revised price of Rs. 4.50 lakh
1, What is the value to be taken as assessable value ? Explain with reasons
2, What is the duty payable on above transaction?