excise/custom duty

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CA Abhash

Chartered Accountant

150 Points Posted on 23 January 2008

if a EOU removes material to DTA, it has to charge aggregate of custum duties as per section 3 of central excise act. now my question is regarding billing of eou unit.

let me explain the billing

Mat xyz 27.33 MT @ rs. 3360 91839

assessable value 91839

excise duty under sec. 3 of CE act 21098

edu cess @ 2% on cenvat 422

s&h edu cess @ 1% on cenvat 211

cst @ 3% 3407

assessable value 91839

bcd @ 5% 4591

cvd @ 16% 15428

edu cess @ 2% 308

s&h edu cess @ 2% 154

edu cess(cus duty) @ 2% 409

s&h edu cess(cus duty) @ 2% 154

aggregate of duties of custom 21098

GRAND TOTAL 116977

i totally understood the yellow coloured highlighted computations but cant understand the blue coloured highlighted computations. why again the edu cess has been charged on aggregate of custom duties. i would like to have a detailed knowledge about this issue.

Replies (3)

CA.Shaleen Srivastava

CA CWA* Bcom(H)

1240 Points Posted on 23 January 2008

because ist edu cess belongs to excise duty and later it belongs to custum shaleen

CA Abhash

Chartered Accountant

150 Points Posted on 24 January 2008

but that edu cess on custom is itself included in the amount of 21098. then why again edu cess charged on 21098.

Kapil Bajaj

Service

79 Points Posted on 25 January 2008

Dear Mr. Abhash, Please note that "WHEN ANY GOODS ARE BROUGHT INTO A 'DOMESTIC TARIFF AREA' FROM AN 'EXPORT ORIENTED UNIT' **DUTIES = DUTIES LEVIABLE ON GOODS WHICH ARE IMPORTED INTO INDIA** (THUS REFERRED AS DEEMED EXPORT/IMPORT) now the one represented in yellow colour is the duty leviable on the goods which are imported in a DTA (import duty) This duty is assumed to be the normal excise duty. further this duty is added with the assessable value and education and s & h edu. cess is then charged seperately.. hope i m able to make u clear.... thanx...