Excise duty on reimbursement of transportation & insp. chgs.

EXICSE (Legacy) 1322 views 1 replies

Dear Reader,

 

I would like to know whether excise duty is to be charged on reimbursement of transportation charges under the following circumstances.

 

As per the tender different breakups of cost viz. Price of Materials / Reimbursement of Transportation Charges / Reimbursement of Inspection Charges were provided in exact figures and any rates & taxes as applicable in % viz. Excise Duty/VAT/CST/Service Tax etc..

 

The tender had a clause to get the material inspected as per the guidelines by their appointed agency before dispatch & deliver the same at their stock yard. The cost of which as said earlier was fixed in the tender on per pc basis. The reimbursement of transportation & inspection charges were not to be included for price escalation.

 

The hereunder table will make it easy to understand.

 

 

Particulars

Unit

Amount (Rs.)

Price of goods (Price escalation as per formula provided in tender)

Nos

1000.00

Reimbursement of Transportation Charges (No Price Escalation to be allowed)

Nos

300.00

Reimbursement of Inspection Charges (No Price Escalation to be allowed)

Nos

200.00

 

Now, is the seller liable to charge excise duty on reimbursement of transportation & inspection charges that are included in the invoice separately as “Reimbursement of Transportation Charges” & Reimbursement of Inspection Charges” at the time of dispatch.

 

Kindly provide the relevant section / case laws to support the answer for better understanding.

 

Regards,

 

Rakesh

Replies (1)

please note that at manufacturers end all such cost would be deemd to be added in assessable value and ED should be charged on gross.

 

specify your role in transaction, viz manufacturer/ dealer/depot or buyer?


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