indirect tax query

825 views 3 replies

When goods are sold from place of Branch office/ Agents/ Depot, why the time of removal is not taken as when goods are actually sold from the place of Branch office/ Agents/ Depot ?  just like when the goods are removed from warehouse.....

 

Replies (3)

This is so because Excise Duty is levied on Manufacture of goods. If tax is imposed when goods are sold then it will become Sales Tax itself. Also removal frm factory is the best measure to say that goods are completely manufactured, that is why duty is imposed at the  the removal from the factory..

Point of levy (taxable event) of excise is manufacturing of goods but point of recovery is removal of goods from factory as per Central Excise Act. Your question is "WHY", because act says.

thank u frnds....

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