EXCISE DUTY PAYABLE ON WHICH AMOUNT

Save Share

This query is : Resolved

AMRISH PANDIT (Querist)

25 January 2009 WE HAVE RECEVIED SUB CONTRACT WORK FOR MANUFACTURING OF ENGINEERING GOODS FROM EPC CIVIL CONTRACTOR WHERE IN WE HAVE RECEIVED ALL THE MATERIAL FREE OF COST FROM OWNER OF THE PROJECT. HOWEVER AS WE HAVE RECEIVED ORDER FROM EPC CONTRACTOR WE WILL RECEIVE AMOUNT FOR ONLY FABRICATION AND ERECTION OF MACHINERY MANUFACTURED BY US.

IN THIS CASE WE HAVE TO CHARGED THE EXCISE DUTY ON WHICH AMOUNT ON OUR SUB-CONTRACT VALUE OR VALUE OF MATERIAL AND OUR SUB-CONTRACT VALUE.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

25 January 2009 You are telling that it is an excisable good. Then when the person is sending would have raised an exsise bill.
Therefore you have to charge excise on value of the material plus sub contract value. However you are eligible to set off the input excise on the materials received from your contractor.Eventhough you have received free of cost as per central excise act when the material is removed from the factory valuation has to be made for central excise purpose and excise has to be paid accordingly.

AMRISH PANDIT

AMRISH PANDIT (Querist)

27 January 2009 WITH REFERENCE TO MY ABOVE REFERRED QUESTION FURTHER

SIR IF OUR MAIN CONTRATOR HAS OPETED FOR PAYMENT OF SERIVE TAX AT COMPOSITE RATE AND WE HAVE DONE THE WORK AS SUB CONTRACTOR AT PROJECT SITE. EXCISE DUTY APPLICABLE OR NOT.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now