If buyer supplied the packing material i.e jute box for supply of material, whether cost of packing material to be amorotised and added in assessable value or not. i.e excise duty is to be paid on packing material or not.
04 February 2009
here addtional consideration (jute box) are playing from buyer to seller therefor the value of such(notional) will be added inassessable value there is no question of amortisation
04 February 2009
here addtional consideration (jute box) are playing from buyer to seller therefor the value of such(notional) will be added inassessable value there is no question of amortisation
04 February 2009
here addtional consideration (jute box) are playing from buyer to seller therefor the value of such(notional) will be added inassessable value there is no question of amortisation
But these jute boxes are used many times i.e life of jute boxes for packing of material is 30 times of packing of this material. Then how it is possible to add notional cost add to assessable value. Plz give feedback.
04 February 2009
Dear Mr.B.K.BANSAL i gave my openion by considering you as a seller, if your buyer is suppling you packing material ( Jute Box )by spending his money then the question of amortisation is his matter and yours.
if we considered you as a buyer then yes, you must considered the amortisation cost at the time of sale
WE ARE SUPPLYING THE GOODS AS PER SPEICIFICATION OF BUYER WHICH IS SOLD TO BUYER IN THE PACKING OF JUTE BOX WHICH IS SUPPLIED BY HIM.
AS PER EXCISE RULE , THE COST OF JUTE BOX SHOULD BE AMORITESED OVER THE GOODS. HOW CAN A BUYER CONSIDERED AMORITSATION COST AT THE TIME OF SALE. IT THE MATTER REALTED TO SELLER NOT BUYER. PLZ ADVISED.
05 February 2009
as per valuation rule 6 anything which folws from buyer to seller will be treated as additional consideration becoz here it cant considered the transactionn as sole consideration hence the market value of jute box is to added into the assessable value of the seller.
Sir Pls state clearly whether the buyer is selling goods as such or making any value addtion to it
if buyer is making any value addtion the buyer will considerd amortization cost while clearing his final product and
if not then seller has to considered amortization cost while clearing goods to the buyer & such amotization will be included into the assessable value and eligible for excise duty.
CAclubindia
