CONCEPT POINT

This query is : Resolved

prabhakar BURNING FIRE (Querist)
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18 May 2011 we are studying that assessable value is the value or rate at which the the commodity is being sold by manufacturer......

LIKE SUPPOSE THE MANUFACTURER SALES THE GOODS(LIKE CAR) AT Rs. 1 than the assessable value shall be Rs.1... HENCE THE EXCISE DUTY SHALL BE CHARGED AT RS.1.... IT DOESNT MATTER WHAT IS ACTUAL MARKET VALUE OF SUCH CAR........

NOW I M CONFUSED..... IS IT POSSIBLE....BECS I HAVE ARGUED WITH MY FRIEND.....WHO HAS TOLD THT IT IS POSSIBLE....

NOW PLEASE THINK PRACTICALLY ... IF IT IS POSSIBLE .... THAN EACH AND EVERY MANUFACTURER CAN FOOL AROUND THE DEPARTMENT...... BY SELLING GOODS(LIKE CAR) ON PEN AND PAPER AT RS.1..... AND BALANCE SETTLEMENT ON CASH....
THAN IT SHALL NOT ONLY BE BENEFITED TO MANUFACTURER BUT ALSO THE BUYER(AS HE HAS TO PAY NEGLIGIBLE AMT OF EXCISE DUTY).....

DO UNDER SUCH SITUATION.. DEPARTMENT....SHALL NOT TAKE ANY ACTION......HE WILL ACT LIKE A HOME VIEWER( MUKH DARSHAKE).....

IS IT POSSIBLE.... IN PRACTICAL WORLD....

PLEASE CLEAR MY CONCEPT........ WITH LOGIC.....

U S Sharma

U S Sharma (Expert)
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18 May 2011 1)what the dealer would do with such car bought at @1/-, and how the seller will avail the input credit of 60000/- for sale of goods of 1/-?

2) when seller will sell the car @ 1 lac how he will adjust the 99999 in his books?
income tax @ 33% is not higher than excise duty?

be practical with accounting and taxation system,

atleast think logical

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