Excise calculation on exemption on year end

699 views 5 replies

vivek agrawal

Others

31 Points Joined March 2014

Hello this is regarding excise excemtion calculation on year end.

We are manufacturere and and our turnover is in between of 1.5 cr to 5cr. Currently we have paying the excise duty since we crossed the 1.5cr limit. now since we want to take the exemption again next year.i would like to understand on the calculation part.

Currently we have the material of 20 lacs in stocks. so at year end ie march 2014, what will happen to this stock and the excise duty to be pay.

Another Question:

I am purchasing goods on 31 march and they will get inward to factory on 10 Apr 14. when will we consider it excise is it 2013 or 2014

Replies (5)

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir,

When you reached the sale Rs. 1.5 crore you are liable to pay Excise Duty and you also eligible taken the Cenvat credit on Inputs.

Stock Matter

Make the Stock statement as per Input purchased and consumed by you on finished goods when you reached the above said sale. No credit admissible, when you are eligible pay to Excise duty.

Further, when you are eligible to pay excise duty on finished goods also you can taken the cenvat credit on inputs which are involved in finished goods. And its process to be continue taken the credit and reverse every financial year.

If further any queries plz forward the same

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

vivek agrawal

Others

31 Points Joined March 2014

ok basically question is for this march end. since i have 20 lacs goods in stock either as raw material or finished goods. now lets say excise on this good is approx 2.5 lacs. total input of excise was say 10lac for this quater which include the 2.5 lacs of finished goods. now consider two possibilities.

1. lets say total output excise as of now is 9 lacs. which is already under 10 lacs.

2. output excise is 11 lacs, in this case i have to pay 1 lacs for sure, what about the stock in hand. will that 2.5 will be charged as payable.

vivek agrawal

Others

31 Points Joined March 2014

few addition to my last post, i will be going to take exception of 1.5 cr on excise duty from this april so from april there will be no concept of input and output. so i want understand from above two scenaio how much do i have to pay and if there will be any excise input carried forward to april 2014

vivek agrawal

Others

31 Points Joined March 2014

	complete consumption	raw material in stock
total purchase	1,000,000.00	500,000.00
total excise input	123,600.00	61,800.00
excise of goods in stock as raw material		61,800.00
total raw goods values	1,123,600.00	561,800.00
over head and profit	200,000.00	100,000.00
total sale value	1,323,600.00	661,800.00
total excise on finished goods	163596.96	81798.48
final value of finished goods including excise	1,487,196.96	743,598.48
excise payable as of now	39,996.96	19,998.48

total input		103,601.52
total output		81798.48
excise payable		-21803.04

to explain my question in better way take these two scenario,

1. i have no raw material balanec in stock on march 31.

2. i have some raw material in stock on march 31. text in blue background is the excise duty on raw material which in stock. and red colored text is excise calculation based on total input and total output