Hi,
I am cosmetics manufacturer based in Gujarat. I am clearing Face Wash under chapter 3304.9990. (Cosmetics - other). Abatment rate is 35% and paying duty on 65% of MRP.
I came to know through one of my buyer that some manufacturers are clearing the same under Chapter 3402 (Washing preparation and cleaning preparation) and calculating duty on transfer price and not MRP based.
can anyone please assist in this regard as I have been through Tariff book almost 5 times, especially abatment part but could not conclude confidently that weather E.D. calculation is on transfer price or on MRP based?
Niraj.
CAclubindia
