Transportation reimbursements - Excise Duty payable?

Mujibur Rahman (Chartered Accountant) (37 Points)

22 June 2011  

A Co. is manufacturing Excisable Goods & charging Excise Duty as per the order value received from customer.In some cases Co. receives reimbursement of Transport Charges paid for transportation of the goods at Customer site. The question is whether Excise Duty is also chargeable on the transport charges reimbursed from the Customer? Please give relevant sections/Rules/cases etc.