Change of transaction value without change in mrp

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Dear,

Ours is a manufacturing Unit producing Unani Medicines. Earlier we have been computing excise duty on Transaction Value and paying excise duty. During certain periods in the past we have changed the Selling Price i.e Transaction Value to our Distributors due to changes in the cost of inputs but without any change in MRP.

Is there any legal provision that MRP has necessarily be changed correspondigly if we increase or decrease our transaction Value prices. if any circular from the MInistry is there. Are we liable to pay any additional duty on account of this.

awaiting earliest clarification. thanks in advance,

 

S. Rajagopalan

09868169984

essargi @ gmail.com

Replies (1)

dear sir,

 

as per current budget, mrp based valuation is applicable for ayurvedic and other type of medicines also. earlier it was only for allopathic medicines.

 

so the transaction value will not play any role with respect to excise duty.

 

you can freely decrease/increase the transfer value of the medicines without any change in mrp. this will have no effect on the excise duty matter.

 

however excise duty will have to be paid on mrp (using the abatement)

 

hoping this clarifies your query.

 

regards,

 

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