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Excise duty

NISHANT PANDEY (JAMSHEDPUR) (24 Points)

28 July 2016

We are Manufacturer, We received some items free from our customer Value 1,00,000 Our Material value Rs. 4,00,000/= What amount is assess able value for Excise Duty ? Sir, please advise Nishant Pandey

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2 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 28 July 2016

Material supplied free of cost by the buyer (before completion of manufacture) is included in the computation of AV for the purpose of ED calculation.

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 29 July 2016

Assuming you are manufacturer paying duty. The duty of excise is on the gross value including the material supplied FOC unless the FOC has been sent under not. 214/86 by another manufacturer.