Mrp valuation
This query is : Resolved
19 October 2011
Sirs,
A paint manufacturer clears his goods under MRP to his depots situated all over the country.
He avails credit on GTA (upto godown) and godown rent claiming that the depot is the place of removal.
Department first directed them to pay the differential duty of 2% on the goods held at stock in the godown when the rate of duty was revised from 8 to 10%. Assessee contended that when the goods are cleared from the factory from the place of removal there is no need to pay the differential duty of 2%.
To this point the dept claimed that when the place of removal is factory gate they are NOT eligible to avail credit on GTA (upto the place of removal) and the godown rent.
Which point is right? Whether 2% differential duty is to be paid or credit is to be reversed?
Can anyone throw light on the issue
with regards
lakshmi
A paint manufacturer clears his goods under MRP to his depots situated all over the country.
He avails credit on GTA (upto godown) and godown rent claiming that the depot is the place of removal.
Department first directed them to pay the differential duty of 2% on the goods held at stock in the godown when the rate of duty was revised from 8 to 10%. Assessee contended that when the goods are cleared from the factory from the place of removal there is no need to pay the differential duty of 2%.
To this point the dept claimed that when the place of removal is factory gate they are NOT eligible to avail credit on GTA (upto the place of removal) and the godown rent.
Which point is right? Whether 2% differential duty is to be paid or credit is to be reversed?
Can anyone throw light on the issue
with regards
lakshmi
20 October 2011
department is correct, you can not take benefit both sided, either you have to fix factory gate as clearance, and forget input credit on GTA/godown rent, or fix godown as place of clearance, and pay diff of duty.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR-Capital Gain
- CLOSING STOCK QUERY
- Gst on travel by air for business purposes
- GST ISD Query on various AMCs
- DUE DATE FOR ITR FILING
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Sale of Mutual Funds In Diffirent Financial Years
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Gst reverse charge mechanism to be claimed in the month of payment
- Itr processing refund
- U/S 194 T
- TDS refund Indemnity Bond
- ITC BENEFIT ON BROKRAGE PAID
- PF wage ceiling
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
