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Section 4a of excise

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This query is : Resolved

siddharth (Querist)

27 January 2014 sir,
If a product is covered under section 4a of excise( MRP based valuation) and the company is not declaring MRP on the product and charging excise duty on the basis of transaction value, so is it correct.

Advice is reqiured

Arun Kumar Singh

Arun Kumar Singh (Expert)

29 January 2014 Yes, it is correct. MRP is not mentioned of the goods then goods will be cleared on transaction value.

siddharth

siddharth (Querist)

29 January 2014 thanks sir,
if a product MRP is 400 and there is 30% abatment, so Excise duty will be calculated on ( 400- 30%). which is 280,
but party is selling actualy at 290.
So cst will be calculated at 290
MY Question is that what should be the invoice total at the end
should it be
290+CST or
290+excise duty + CST.
Advice required

Arun Kumar Singh

Arun Kumar Singh (Expert)

29 January 2014 Duty will be paid on transaction value it may be below 280 and above.

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