Excise Duty on Fertilizers

CA Rajeev Gupta (SERVICE) (42 Points)

03 March 2011  

Dear Friends,

Our Finance Minister has withdrawn the Exemption from Excise Duty on Fertilizers. The duty rate will be 1% if manufacturer does not avail Cenvat on Input and Input Services (Ref:-Notification No.1/2011-CE dated 01/03/2011). The rate will be 5% if manufacturer  avail Cenvat Credit on Input and Input Services.

This is certainly going to increase price of Fertilizers (Ref:- Notification No.2/2011-CE dated 01/03/2011.