effect on increase in excise duty to 10% on contracts
This query is : Resolved
08 June 2010
the organisation had entered into a contract for fabrication of CO2 tanks with a public sector unit. the price bidded in the tender for the same was inclusive of excise duty being charged @ 8.24%. the contract was for a period of six months spanning 2 financial years. in the mean time the rate of excise duty has increased to 10%. the value of contract wont be changing. is the assesse company supposed to pay the excise duty @ 8,24% or 10.3% to the govt.
09 June 2010
Excise Duty is payable at the time of dispatch @ rate applicable at that time. In your case you have to pay excise duty @ 10.30%.
The Contract with the PSU or any Private Company does not change your Excise Duty Liability. You may proportionally reduce Basic Value of your product so that it will tally with contract price after charging ED at the appropriate rate.
The Contract with the PSU or any Private Company does not change your Excise Duty Liability. You may proportionally reduce Basic Value of your product so that it will tally with contract price after charging ED at the appropriate rate.
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