Pass on of excise duty for traders
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 May 2013
I have started a trading firm with excise license. What I got to know is that we have to pass on the excise duty which is charged by the manufacturer to us.
For eg. if material is of Rs.100. We are charged 100+12.36(excise).
Now we want to sell that material in Rs.120.
Do we have to charge
120+12.36(excise by manufracturer)
OR
120+14.83(excise of 12.36% on 120)
Our consultant told that we have to charge according to first case but with that our client can easily know whats the actual cost price and how much profit margin we have.
How to hide this profit from our cutomer.
Thanks.
For eg. if material is of Rs.100. We are charged 100+12.36(excise).
Now we want to sell that material in Rs.120.
Do we have to charge
120+12.36(excise by manufracturer)
OR
120+14.83(excise of 12.36% on 120)
Our consultant told that we have to charge according to first case but with that our client can easily know whats the actual cost price and how much profit margin we have.
How to hide this profit from our cutomer.
Thanks.
Arun Kumar Singh
(Expert)
27 May 2013
You can not hide the assessable value purchase from manufacturer.
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