I need an opinion on recent excise duty imposed in readymade garments during Budget 2016.
As understood it is applicable for readymade garments with MRP of 1000/- when sold under a brand name.
Now we are unclear on a situation wherein if the MRP is below 1000/- and bears a brand name, does one need to obtain excise registration certificate and clear goods with nil duty or he can continue clearing goods as the MRP is below 1000/- without taking Excise registration.
Since the excise duty comes into picture only when the MRP crosses 1000/- we are a bit confused on how to handle the situation considering the fact that MRP of all readymade garments will always be less than Rs. 1000/-
Please share your opinion.
Regards
Prashant
CAclubindia
