Excise duty calculation on additional material

Hello Experts,

I confused on excise duty calculation in below case.

One customer provided material on free of cost basis.

He has not generated any invoices on us. But when we manufactured finished goods and raised invoice on huim, we calculated excise on our basic value of our product + provided material cost then CST on our basic value of product.

E.g. Basic product cost -    2,00,000.00/-

Additional mate. cost -       1,00,000.00/-  (material is on free of cost basis)

Assessable value -             3,00,000.00/-

  So , Excise duty -               37,500.00/-

CST -                                    4,000.00/-

Gross value -                     3,41,500.00/-

So, kindly suggest is it correct ?

 

Thanks & Regards,

Pankaj

 

Replies (3)

Dear

No it is not correct. CST is to be calculated on the taxable sale value i.e. 337500 not on basic product value.

CST is computed on Assessable value + Excise Duty = Taxable value for CST/VAT purpose.

Thanks for your reply.. What about excise duty?

Is it correct calculation?

Yes, You should take fair market value of goods supplied to calculate assessable value of exciseable goods.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details