Hi,
I have one doubt regarding differential duty in excise. One of my client is a manufacturing entity. It is having yards (warehouses) and also depots.They are sending goods to yards and from there goods will be despatched to depots and from there final sale will be done. Initially they are sending goods to yards for e.g Rs.1000. From yards to depot price will be 1200. From depot to final customer, price will be 1500. Now on which price ultimately we should calculate differential duty. Client is paying excise duty initially on Rs 1000 and differential duty on yard price i.e. (1200-1000=200). It is not paying on depot price. Manufacturing place and also yards are registered with excise department but not depots. Now is it correct?
Another doubt is as per service tax they have registered as Input Service Distributors where it includes depots aslo. They are taking CENVAT credit on depo security charges saying that it is also registered under service tax. Is it correct ?
Thanking you in advance.
B Vamsi
CAclubindia
