28 March 2010
Hi We are a battery Manufacturing Unit, registered with Central Excise & Customs. We are sending batteries to our customer in Corrugated box packing. On the Packing Box we are mentioning warranty period, list of accessories, manufacturer address (co Address) etc. We are also pasting a sticker of M.R.P stating that value are inclusive of Tat. We are puting more value thatn our Invoice value. Now my question is: 1. Whatever we are doing is it OK? 2. If any Central Excise officer find-out that is there any problems are there? 3. If pointed out by any Excise officer/Auditor wheather we have to pay any differential duty? I request you kindly confirm me at the earliest. Thanks and regards R.
28 March 2010
The MRP is meant for the retail consumer. MRP means maximum retail price which is bound to be higher than the price at which the company is selling the battery to the wholesaler or the distributor or the retailer.
There is nothing wrong in what you are doing so long as you are paying excise duty on your invoice value.
CAclubindia
