Is excise duty leviable on subsidy receivable?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 July 2013
Dear All,
Is excise duty liveable on subsidy receivable from government on Manufacturing & Production of Fertilizer? If answer is yes than Plz Provide the notification or under which valuation Rules of Central Excise.
Is excise duty liveable on subsidy receivable from government on Manufacturing & Production of Fertilizer? If answer is yes than Plz Provide the notification or under which valuation Rules of Central Excise.
RENGARAJ R.K
(Expert)
27 July 2013
You are right. The department has issued notices to the manufacturing units of fertilisers to provide the details of subsidy received for price controlled commodities. According to the department the manufacturing unit is paying excise duty on lesser price and hence the department wants to add the subsidy also for valuation purpose. So far there is no notifiction.
I shall provide you shortly the outcome of the case.
I shall provide you shortly the outcome of the case.
Message likes :
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Querist : Anonymous
Querist :
Anonymous
(Querist)
29 July 2013
Thank You Sir. Please Provide the outcome of the case as early as possible.
01 August 2024
No, excise duty is not leviable on subsidy receivable from the government. Excise duty is generally assessed based on the value of goods produced or manufactured. Subsidies or financial assistance received from the government are not considered part of the transaction value of the goods for excise duty purposes.
For fertilizers, the relevant excise duty provisions are governed under the **Central Excise Act, 1944** and the related notifications. The rules regarding the valuation of excise duty are laid out in the **Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000**. These rules focus on the value at which excise duty is assessed, which includes the cost of production or manufacture but excludes subsidies.
**Relevant Notification:**
- **Notification No. 8/2003-Central Excise dated 1st March 2003**: This notification, along with other similar notifications, specifies the exemption and valuation rules for fertilizers and other goods.
If you are receiving a subsidy from the government, it typically does not affect the excise duty liability directly but may be relevant for other tax or accounting considerations. For specific cases or complex scenarios, consulting with a tax professional or legal advisor is recommended.
For fertilizers, the relevant excise duty provisions are governed under the **Central Excise Act, 1944** and the related notifications. The rules regarding the valuation of excise duty are laid out in the **Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000**. These rules focus on the value at which excise duty is assessed, which includes the cost of production or manufacture but excludes subsidies.
**Relevant Notification:**
- **Notification No. 8/2003-Central Excise dated 1st March 2003**: This notification, along with other similar notifications, specifies the exemption and valuation rules for fertilizers and other goods.
If you are receiving a subsidy from the government, it typically does not affect the excise duty liability directly but may be relevant for other tax or accounting considerations. For specific cases or complex scenarios, consulting with a tax professional or legal advisor is recommended.
01 August 2024
No, excise duty is not leviable on subsidy receivable from the government. Excise duty is generally assessed based on the value of goods produced or manufactured. Subsidies or financial assistance received from the government are not considered part of the transaction value of the goods for excise duty purposes.
For fertilizers, the relevant excise duty provisions are governed under the **Central Excise Act, 1944** and the related notifications. The rules regarding the valuation of excise duty are laid out in the **Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000**. These rules focus on the value at which excise duty is assessed, which includes the cost of production or manufacture but excludes subsidies.
**Relevant Notification:**
- **Notification No. 8/2003-Central Excise dated 1st March 2003**: This notification, along with other similar notifications, specifies the exemption and valuation rules for fertilizers and other goods.
If you are receiving a subsidy from the government, it typically does not affect the excise duty liability directly but may be relevant for other tax or accounting considerations. For specific cases or complex scenarios, consulting with a tax professional or legal advisor is recommended.
For fertilizers, the relevant excise duty provisions are governed under the **Central Excise Act, 1944** and the related notifications. The rules regarding the valuation of excise duty are laid out in the **Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000**. These rules focus on the value at which excise duty is assessed, which includes the cost of production or manufacture but excludes subsidies.
**Relevant Notification:**
- **Notification No. 8/2003-Central Excise dated 1st March 2003**: This notification, along with other similar notifications, specifies the exemption and valuation rules for fertilizers and other goods.
If you are receiving a subsidy from the government, it typically does not affect the excise duty liability directly but may be relevant for other tax or accounting considerations. For specific cases or complex scenarios, consulting with a tax professional or legal advisor is recommended.
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