Excise duty on bulk import and repacking in india

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Hello  to  All 

WISH  YOU  ALL  HAPPY  DIWALI

Please  let  me know  the  applicablity  of  excise  duty  and  its  current  rates  on  importing  cosmetics / shampoos  and other  beauty  and toiletery  items  in  Bulk  packing  and  re-packing  it  in  bottles,  and  selling  to  the  end   users  directly  through  its  stand  alone  outlets  on pan  india  basis.

So,  I  want  to  know  the  applicable  excise  duty  on   re-packing.  I  believe  this  type  of  re-packing  tentamounts  to  manufacturing  and  excise  duty  is  applicable.

If  so  on  what  price  excise  duty  is  payable ? 

IS   there  any  set  off  of  excise  duty  with  State  VAT  Payable  on  retail  sale

 

 

 

 

 

 

 

 

 

 

 

 

Replies (3)

repacking in consumer packs amounts to manufacture, and excise duty @ 10.3% is applicable, you can avail cenvat of CVD paid at the time of clearance from customs.

 

similer way the repacked goods are seperate identity from imported one, and vat rules appy for chargebility on the sale and subsequent sales.

Repacking is manufacture for the subject goods. MRP based valuation is applicable. Excise duty is 10.3% of MRP less abatement. VAT being state law , rate as per the schedule of VAT law in your state. No set off between VAT and excise duty.
 

Originally posted by : CA Unnikrishnan Nair N

Repacking is manufacture for the subject goods. MRP based valuation is applicable. Excise duty is 10.3% of MRP less abatement. VAT being state law , rate as per the schedule of VAT law in your state. No set off between VAT and excise duty.
 

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