Point of liability in excise

538 views 4 replies

Shamu Shihabudeen

Student

29 Points Joined August 2010

Dear Experts,

Please help me out on this. Though the question may seem silly but i cannot stand without knowing. I have tried to get all the sources but cannot conclude on the same.

My doubt is this:

Should excise be calculated as and when the goods are manufactured (Sounds convincing for me) but yesterday on asking the working for the same from the client, he has told that there has been some notification wherein its necessary that the Excise be calculated as and when the goods get through the factory gate. Is it a right notion. If so, then what else they (my client) has to calculate?

Please help me thank You.

Replies (4)

Guest

Let me make you understand by simple concept..

Taxable event in case of excise is depend on the manufacturing i.e. whether goods are liable to excise duty or not at the time of manufacturing but the rate applicable on the excisable goods shall be applicable when the goods are actually been removed.

Shamu Shihabudeen

Student

29 Points Joined August 2010

Thank you for that.!!

From your reply i am given to understand that the Companies have to keep their workings ready for their assessment, which is what they have to show in their PLA. But payment of the same arises when the goods are despatched.

So is my client correct in respect to the interpretation??

Guest

Yes payment arises only and only when goods are dispatched...

Shamu Shihabudeen

Student

29 Points Joined August 2010

Thanks a lot. That was highly helpful!!! Any other nuances in Excise which i may find in an Audit. Please let me know. I shall be highly gratituous towards you.!!

Thanking You.