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Mrp abatement

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(Querist)
02 February 2012 Dear Sir,

Our excise duty calculation is as follows

MRP = 88
Exfactory Price = 57.00
E.D. @ 16.62% = 9.47
Cess @ 2% on E.D. = 0.19
Hr. Edu. Cess @ 1% on E.D. = 0.09
Basic Price with Taxes = 66.76
VAT @ 5% = 3.34
VAT Price = 70.09

Our Invoice value is Rs.70.09
Freight & inland Transport = 8
Cold Room rent & Expenses = 5
Distributors Landed Cost = 83.09
Distributor- vat to customer 5% = 87.24
Distributor's Margin 10% = 95.96


My question is how the distributor can bill at Rs.88 when the landed cost for him itself is rs.87.24? What about Distributor's margin? We cannot reduce our basic price from Rs.57.

Pls explain how we can overcome this abatement issue. Pls guide us how to proceed further
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CA Nikhil Jhanwar

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CA Nikhil Jhanwar (Expert)
02 February 2012 On what basis rate and amount of excise duty is arrived...
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CA Nikhil Jhanwar

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CA Nikhil Jhanwar (Expert)
02 February 2012 I am keeping this query open...
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Aashok Kumar Sharma online

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Aashok Kumar Sharma online (Expert)
03 August 2024 https://docs.google.com/document/d/1aWUAjvDKwuKaPWTLy-HxTLmdi07WgiYedljfrDpKJWA/edit?usp=sharing
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