Sir/Madam,
If a manufacturing company distributes some manufactured goods to its employees as gifts,what will be the excise liability? How it should be treated in accounts?
CA SAUBHIK SAMANTA (Partner) (40 Points)
23 March 2012Sir/Madam,
If a manufacturing company distributes some manufactured goods to its employees as gifts,what will be the excise liability? How it should be treated in accounts?
Mihir Doshi
(B.Com, CA, CS, LLB)
(2187 Points)
Replied 23 March 2012
Central Excise Valuation (determination of price of excisable goods) Rules, 2000
Rule 4: The value of the excisable goods shall be based on the value of such goods sold by the assessee for delivery at any other time nearest to the time of the removal of goods under assessment, subject, if necessary, to such adjustment on account of the difference in the dates of delivery of such goods and of the excisable goods under assessment, as may appear reasonable.
Valuation as per the rule 4 and adjustment will be done according to the timing difference if significant.
Keval Ponkiya
(CA CS MBA(Fin.) M.Com. L.L.B.)
(223 Points)
Replied 23 March 2012
Rakshit
(practising)
(338 Points)
Replied 24 March 2012
Excise duty is on manufacture, hence you have to pay duty, irrespective of goods are to be distributed free.
Raksh*t Verma
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