MRP Sale + Free Gift (Valuation)

This query is : Resolved

A. Kiran Kumar (Querist)
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14 April 2009 Dear All Experts

I need your valuable suggestion in the following matter.

Ours is the Ceramic Tiles & Sanitaryware Industry. Tiles are cleared under MRP Valuation (Sec 4A) and Sanitaryware is cleared under Sec 4. (advolerm)

Further for promoting of our Tiles Sales we want to give sanitaryware items as a free gift alongwith Tiles to our customers.

My query is whether the duty is payable on the clearance of Sanitaryware items which are cleared alongwith Tiles as a free gift. If yes, what is the procedure for valuation.

Thanks in advance.

Dayal

Dayal (Expert)
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14 April 2009 Valuation will be on sec 4, no exemption for duty as duty is on manufacture and payable on removal.

you may address this by seeking PME, post manufacturing expense which allows discounts for reduction

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A. Kiran Kumar

A. Kiran Kumar (Querist)
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15 April 2009 Thank you so much Dayalji.

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