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.....
ravi. (article trainee) (424 Points)
11 December 2009When 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.....
Ashish Ojha
(Chartered Accountant)
(469 Points)
Replied 11 December 2009
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..
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 11 December 2009
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.
CAclubindia
