Value per unit is calculated on Gross or Net?
If per unit is on Gross then take Gross otherwise Net.
On Net weight then...
We sent Flexible plastic Material to a party Qty:- 2000 Kgs(Net Weight), But Gross weight 2150 Kgs. due to some Packing materials. Difference Gross-Net = 150 kgs. We raised Tax invoice on 2000 Kgs x 160/- per kgs=Rs.3,20,000/- i.e Assl. Value. and duty 18% is 57,600/- that is ok. Duty officer telling we have to raise bill on 2150Kgs. that means on 150 kgs we have to pay duty 150kgsX 160/- per kg rate= 24000/- and duty 18%= 4320/-extra to be paid. Which is correct ? On Net Weight duty to be paid or Duty to be paid on Gross Weight ? By which Rule ?
Net weight is correct, gross weight mentioned only in E-way Bill . On value i.e per kg rate other incidental expenses incl. packing charge is pro rata basis is loaded as per valuation rule 15 , Valuation is calculated including packing charge also.
So, if we make duty calculation on Gross weight , then duty will be given two times. 1) Per kg rate is calculated incl of all expenses . 2) If we pay duty on Gross weight then double duty will be imposed.
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