Mrp abatement
This query is : Resolved
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
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
CA Nikhil Jhanwar
(Expert)
02 February 2012
On what basis rate and amount of excise duty is arrived...
CA Nikhil Jhanwar
(Expert)
02 February 2012
I am keeping this query open...
03 August 2024
https://docs.google.com/document/d/1aWUAjvDKwuKaPWTLy-HxTLmdi07WgiYedljfrDpKJWA/edit?usp=sharing
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