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Price inclusive of excise duty

EXICSE (Legacy) 683 views 2 replies

satwick adhikary

account assistance

26 Points Posted on 18 June 2015

Hi,

this is my first post & first quarry

Many manufacturers in India (like Pidilite Industries) have their Price List (PL) inclusive of Excise Duty (ED). Now

example: If List Price of Item A = 100 ( then in normal circumstances if a customer is given a discount of 10% ) then the price would be 100-10% = 90.

Now in there is a need for this prices to be inclusive of Excise duty so if we assume the Excise Duty is 12% then how to calculte it? (How to do Backword Calculation in this case?)

NB: MRP of Drum Of 300 Ltr is Rs. 3000

Thanks in Advance

Replies (2)

CMA Poornima Madhava

CMA

13117 Points Posted on 18 June 2015

Let us assume Rs.100 includes ED @ 12%, so breakup would be Rs.89 (basic price) + Rs.11 (ED) (i.e. 100/1.12 gives the basic price)

Similarly u can do it for any value.

Is this what u wanted to know?

U S Sharma

glidor@gmail.com

21068 Points Posted on 18 June 2015

Pidilite ind or other consumer goods manufacturers clear the goods under MRP basis and they get their calculations lower than MRP for duty calculation, so 1 or 2 percent does not effect on their MRP in short term, however in long term they may change the MRP