Excise on promotional schemes

538 views 2 replies

Jeevesh Mehta

Advocate- Corporate Commercial & Indire

861 Points Joined February 2009

Dear all,

A company manufactures certain product. As an promotional scheme they give free products like Tooth paste / Shampoo with the main product.

These free products are procurred from different manufacturers.

Now at the stage of removing the manufactured product from factory along with free promotional products. what would be the Duty liability?

Free products are obviously duty paid products. but the manufacturer can not change the MRP of the main product.

Whats the terat ment... please advice ..

Regards

Jeeevsh

Replies (2)

Rajesh Kumar

Advocate- Tax

7806 Points Joined December 2008

Excise duty is on manufacture- thus the product, which has not been manufactured, there is no Excise duty liability.

However, answer to your question depends upon various factors like whether credit is being taken on such brought out items, how duty is being paid on combined packages under Section 4A etc.

Ram kr.

Buisness

883 Points Joined November 2008

Dear Experts,

Does it any rule or notification in which we can sell our manufacturing product to Govt. Instituition, Govt. social service plan, like unops or unicef free of excise duty.

Thanks