assessable value n duty liablilty

product sold -- @ Rs500 per unit

price includes CST @ 2%

average freight irrespecive of place of deleivery - 100%

actual freight incured on product for delivery at buyers place - 150

excise duty - 8%

 

as per my opinion

cst is = 9.8  rounded off to 10

value before CST is 500 - 10= 490

as freight from place of delivery to buyers place should be excluded for valuation purpose... assessable value inclusive of excise duty is = 490 - 150 = 340

so now excise duty is =  340 * 8\108= 25 Rs

basic price =                     465

less: freight                       (150)

                                         ------------

AV                    =               315

add: ED   @ 8%                25

                                         --------------

 value before CST =   340

and without freight

add: freight                 150

                                    --------------

value for CST           490

cst @ 2%                    10

                                 ----------------

TOTAL PRICE         500

                                ------------

 

PLEASE LET ME KNOW IF AM WRONG IN AY OF THE CALCULATING PROCEDURE.....

 

I SAW MANY ANSWERS CALCULATING cst WITHOUT ADING BACK THE FREIGHT UPTO PLACE OF DELIVERY, WHICH IS DEDCUTED TO CALCULATE EXCISE DUTY

 

Replies (1)

Hereyou are paying CST on freight on CST also, thats not wrong in State laws, but no real benefit to pay CST on freight, as the freight is determined by transport operator not by yourself, so u have to charge CST before freight outward and then add delivery charges.

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