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Excise on freight

815 views 4 replies

SIR,

 

KINDLY LET ME KNOW IF WE ARE FOLLOWING CORRECT PRACTICE OR NOT.

WE ARE SELLING THE GOODS & DETERMINING ASSESSABLE VALUE AS FOLLOWS:

BASIC VALUE:                                                   10000/-

ADD: TRANSIT INSURANCE                            5.5/-

ASSESSABLE VALUE                                      10006/-

BED @ 5%                                                          500

ED CESS                                                                10

HED CESS                                                                5

PAPER CESS   @ .125%                                      13

ED CESS                                                                     1

HED CESS                                                               --------

TOTAL                                                                 10535/-

ADD: CST @ 2%                                                     211/-

ADD: FREIGHT:                                                      700/-

GRAND TOTAL                                                 11,446

 

WE ARE MAKING FRIEGHT ON BUYER'S BEHALF & THEREAFTER WE ARE RECOVERING IT FROM HIM, SO WE ARE NOT CHARGING EXCISE DUTY & CST ON IT.

IS IT THE CORRECT PROCEDURE? CAN YOU PLASE SUGGEST ANY ALTERNATIVE PROCEDURE IF THE CURRENT PROCEDURE IS WRONG.

PLEASE HELP ME OUT.

 

Replies (4)

procedure adopted by you is seems good but wait the advice of expert on this issue. This question is good to knowledge

According to me Paper cees is applicable to "scheduled industry" means the scheduled industry falling under the heading '24 paper and Pulp including Paper Products' in the First Schedule to the Act.So first check it is applicable to your company or not.

ED CESS you have charged 2 tymes which i think not required.

transit insurance is not part of assessable value, it would be charged alongwith freight.

transit insurance charges wont form part of assessable value as per sec 4 of excise law. 


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