What is transaction value under excise

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Nilesh

47 Points Posted on 17 September 2011

XYZ Ltd. is a SSI Unit as per Excise Act. XYZ Ltd. are normally sale his product @ Rs. 100 per Kgs. in the market upto the turnover of Rs. 150 lakhs. On 15/03/2011 his turnover of sale is exceeded Rs. 150 lakhs and his sale is liable to excise duty @ 10.3%. On 15/03/2011 to 31/03/2011 he sale his product @ Rs. 90.50 per Kgs. and collect excise duty of Rs. 9.32 per Kgs. (Rs. 90.50 X 10.30%). i.e. total collection from customer Rs. 99.82 per Kgs.

My question is Excise duty calculated by the company is correct or not? For this purposes what is transaction value - Rs. 100 per Kgs or Rs. 90.50 per Kgs.?

Replies (3)

U S Sharma

glidor@gmail.com

21670 Points Posted on 17 September 2011

100/110.3 = 90.66 is assesable value

90.66*10.3% =9.34 excise

90.66+9.34=100

RAMESH KUMAR VERMA

CS PURSUING

28836 Points Posted on 17 September 2011

transaction value" means the transaction value at which the greatest aggregate quantity of goods are sold;

FOR MORE INFO:

https://www.cbec.gov.in/excise/cx-act/cent45-2k.htm

https://www.dateyvs.com/cenex04.htm

Paresh

Final C.A. Student

36 Points Posted on 17 September 2011

Transaction value shall be Rs. 90.50. It is because under Central Excise each removal has to be considered seperately for determination of Excise duty ( Rule 4 of CER'2002.)

@ Mr. Rakesh Verma ---

Not all the times transaction value" means the transaction value at which the greatest aggregate quantity of goods are sold.

It is applicable in certain cases only. e.g. Depot Sales, transfer from job workers premises etc.

transaction value is defined u/s 4 (3)(d) of CEA'1944 whereas definition you are trying to say is in Rule 2 of Central Excise Valuation Rules, 2004