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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
19 August 2026
Chartered Accountant - Financial Consolidation & Reporting

Synergy Keystone

Mumbai

CA

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details