Excise on textiles and readymade garments as per budget 2016
This query is : Resolved
CA Priyanka A Mundada
(Querist)
04 March 2016
CAN ANYONE PLEASE ELABORATE THIS NEW PROVISION REGARDING EXCISE @ 2% OR 12.5%
Ankur Singhal
(Expert)
04 March 2016
Dear
You must asking wrt textiles as amended by finance bill 2016
As you know,in case you are liable to pay excise then you are eligible to take cencat credit on inputs.
But here the govt has provided an option to the manufacturer I.e if they want to take cenvat credit then they need to pay ED @12.5%.and they do not want to take cenvat credit then pay ED@ 2%.
You must asking wrt textiles as amended by finance bill 2016
As you know,in case you are liable to pay excise then you are eligible to take cencat credit on inputs.
But here the govt has provided an option to the manufacturer I.e if they want to take cenvat credit then they need to pay ED @12.5%.and they do not want to take cenvat credit then pay ED@ 2%.
CA Priyanka A Mundada
(Querist)
04 March 2016
ONE OF MY CLIENT IS ENGAGED IN MANUFACTURING OF TEXTILES, THEN HE WILL BE ELIGIBLE FOR 2% ED WITHOUT CENVAT CREDIT.
IS THERE ANY FURTHER ABATEMENT APPLICABLE OR FLAT RATE OF 2 % ED
IS THERE ANY FURTHER ABATEMENT APPLICABLE OR FLAT RATE OF 2 % ED
CA Priyanka A Mundada
(Querist)
04 March 2016
And what if retail price is less than 1000/-
Ankur Singhal
(Expert)
04 March 2016
Dear
For a textile good to be taxable following all the conditions should be fulfilled.
1. RSP of Rs1000 or more
2. Item should bear a brand name
3. Tarrif value will be 60% of RSP.
4. ED 2% or 12.5% tarrif value
For a textile good to be taxable following all the conditions should be fulfilled.
1. RSP of Rs1000 or more
2. Item should bear a brand name
3. Tarrif value will be 60% of RSP.
4. ED 2% or 12.5% tarrif value
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CA Priyanka A Mundada
(Querist)
04 March 2016
CLIENT IS DOING CUTTING, STICHING AND PACKING FOLDING OF BEDSETS AND THEN SENT TO OTHER HANDLOOMS CLIENT LIKE BOMBAY DYING.
IN THIS SITUATION WHETHER EXCISE WILL APPLICABLE AND IF YES WHAT WILL BE THE EXCISABLE VALUE IF SALE PRICE IS 2000/-
IN THIS SITUATION WHETHER EXCISE WILL APPLICABLE AND IF YES WHAT WILL BE THE EXCISABLE VALUE IF SALE PRICE IS 2000/-
Ankur Singhal
(Expert)
04 March 2016
Dear
Here you have to see whether the branding and price tag are affixed by him or by Bombay dyeing.
If your client is doing same then he will be liable to ED.
As the RSP is Rs. 2000/- hence ed will be
2000*60%= ₹ 1200/- i.e tarrif value.
ED = 1200*2%=₹24/without cenvat.
Here you have to see whether the branding and price tag are affixed by him or by Bombay dyeing.
If your client is doing same then he will be liable to ED.
As the RSP is Rs. 2000/- hence ed will be
2000*60%= ₹ 1200/- i.e tarrif value.
ED = 1200*2%=₹24/without cenvat.
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