DEBIT NOTE FOR RATE REDUCTIONS

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This query is : Resolved

Vipin (Querist)

18 December 2009 Hello Sir(s),

My self is working in a auto ancillary plant , located in SEZ , we are getting the exemption of excise duty , our final product is exempt from exise duty,
My query is related to the rate diff debit notes , which i raise to my parties , see suppose i purchase my raw material by x rate, and party is invoicing me with excise duty, now if i have to give a debit note to party for rate reduction w.e.f previous periods , should i include the excise duty in my debit notes or not. pls reply me with ruling(u/s , rules etc.) of excise.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

23 December 2009 Practically debit notes should be for only rate with ED not being part of the same since the refund of the same would not be poossible for the manufacturer.
You could avail the same fully and claim the same as refund.

Vipin

Vipin (Querist)

24 December 2009 Dear Sir,
Thanks for ur reply , we are here in special economic zone and our final product is exempt from excise duty , so how could we avail the benfetis of excise duty which we are paying on purchase of raw material.

Pls advise.

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