All Experts.... pls. reply....

I am CA final student. I have a query about export sales made by HEOU.



1. When an Export sale is to be booked in Books of account, we have convert it in to Indian Rupee (base currency) for booking sales. As per accounting standard (AS11) we have to convert it by using exchange rate on the transaction date i.e. Bank rate.
2. According to Excise dept., we have to use exchange rate as per Government notification for calculation of excise duty.

3. If we follow point 1 & 2 sales as per excise records & sales as per books of account will be different; and at any time (e.g. during audit) excise dept. will ask to match the sales as per books of account.


Now, my questions are…



1. Is it necessary to use exchange rate as per Government notification for calculation of excise duty? If Yes, why? Because excise duty is to be paid on “transaction value” and there is no specific mention in Central Excise Act to use exchange rate as per Government notification for calculating excise duty (unlike in Customs Act, where there is specifically mention to use exchange rate as per Government notification).

2. If we have to use exchange rate as per Government notification for calculation of excise duty, how can we match the sales data as per books of account and as per excise records, as required by Excise dept.? And will they accept the argument for difference in sales.

Matang Parekh

Heloo sir,
iam fabrication contractor of heavy industrial equipments like stroage tanks,structures,chimmenys etc... in tamil nadu as excisable unit.

Due to place constriant in present factory, iam planning to take rental basis in different place, to fabricate and manufacture the equipments.

iam having doubt, is there any formalities or procedure to start another rental unit in different places like licence,Excise duty,Service Tax and Sales tax..

Kindly guide me about this subject,it's very highly appericiatable

please forward your valuable idea
i am going to sales our old machinery wheni am go to make sales invoice we have to deposit the Excise on it or not if yes please Guide

Sir,

I would like to know whether following statement is correct or not

1.If one SSI excisable goods turnover in PY is not excceding 4crores,then it is fully exempt from Excise duty.

2.If one SSI excisable goods turnover in is 10crores,then 1st 1.5crores is fully exempt from Excise duty and the remaining 8.5crores is taxable at appropriate rate.


Further it is requested, which oragnisation shall be considered as SSI for the purpose of availing exemption under Excise Law.

yours faiyhfully

G Ramesh babu

Sir,

Pl advise me whether following statement is correct or not

1.For calculation of Excise duty, we should not considered the amount of frieght and insurance(transportation charges),only Exworks price shall be taken in to account.

2.For calculation of CST,we should not considered the amount of frieght and insurance(transportation charges),only Exworks price+Excise duty+EC+SHEC shall be taken into account.

3.For calculation of VAT,we should considered the amount of frieght and insurance(transportation charges)also.,i.e., Exworks price+Tranportation charges+Excise duty+EC+SHEC shall be taken into account.


yours faithfully

G Ramesh babu

I have the below query:

Suppose ABC Ltd. has a special scheme to sell things. They have the following offer to their customers:

If any customer buys 100 Nos. of Item A before 31st December 2008, they will automatically get 10 nos. of Item B as free.

The normal selling price of item A is 100 and that of B is 200.

Please note that the items A and B are NOT covered under any specific duty / tariff value / retail sale price based valuation.

Transaction Value based valuation is applicable in the given scenario. All rules applicable for using transaction value like Unrelated buyer and seller, price is the sole consideration etc. are satisified.

In this scenario, Using this special offer, Is it ok to ship Item B with ZERO as assessable Value and by paying ZERO excise duty

OR

the item B has to suffer excise duty based on the value of Rs.200 or some other value as per valuation Rules?

Would the answer be any different if Item B is purchased outside or manufactured by ABC Ltd.?

If anyone could clarify, it would be great.

Thanks / Vijay

Dear Sir,

I have the following query regarding CENVAT on capital goods. If someone can clarify, that will help.

Suppose i receive Capital Goods, each worth Rs.10000 and having Excise duty of 1000. I receive two such machines. So the total value is Rs.20000 and total excise duty is 2000 (in a single invoice). Now, i avail 50% Cenvat credit on these machines. SO i avail 1000 as cenvat credit and 1000 is available for claim during the next year.

Now, before using these machines, i realize that the machines are defective. SO i want to return this back to the vendor (both the machines).

Since i am removing the capital goods "AS SUCH", i reverse the credit i availed for rs.1000. Now, i have to prepare an excise invoice for moving this back to the vendor. In this excise invoice, i would be showing Rs.2000 as Excise Duty (for both the machines). Now, the issue is this:

The debit in my CENVAT register for such removal would reflect as Rs.1000 (being equal to the credit that i had availed). However, my excise invoice will show that as Rs.2000. Is this alright? Will excise authorities object to this?

If this is not correct, what is the excise duty that i should show on my excise invoice? What is the amount of debit that will appear in my Cenvat register?

If anyone of you could clarify, i would really appreciate it.

Thanks / Vijay

Sir,

We are starting a New Company. Mainly that company products is Extra Neutral, Rectified Spirit and Industrial Alcohol. In this way Excise and Sales Tax registration is need / not. Incase if need How much percent Excise and how much percent Sales Tax/ VAT?

And from which date we file returns.

Please give reply as early as possible.

Regards,
Madan.

Hi!

In Central Excise view,
Define Trader, Dealer, Manufacturer & Supplier?

Thanks

What is the present limit for getting exemption from registration under Central Excise?