excise duty on vat portion of goods

This query is : Resolved

Report Abuse Follow Query Ask a Query

Rahul Panwar

Rahul Panwar (Querist)
Follow

10 June 2016 there may be cases where the excise duty is levy on vat portion of goods.

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
Follow

16 June 2016 excise duty cannot be levied on VAT amount

Rahul Panwar

Rahul Panwar (Querist)
Follow

17 June 2016 dear Chandra sir, we found such cases during my audit period plz refer link http://worldtradescanner.com/CBEC%20Circular-17.09.2014.htm

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
Follow

17 June 2016 You are correct in the given situation but in normal course excise is levied before charging vat. Because transaction value is determined at the time of removal. Getting back or retaining incentive from government is peculiar situation and it cannot lead as normal practice