When to calculate excise

A manufacturer manufacture product A in his factory, which is excisable and excise is to be charged @ 12.5% on product.

Now to manufacture he will incure cost which is known as manufacturing cost, the manufacturing cost  is raw material cost which include excise, vat, octroi, transport, loading, unloading.  Manufacturer will also incure electricity also.  Because this is his business he will also earn profit, so while charging excise  he will charge excise on maufacturing cost or manufacturing cost plus profit?

 

Replies (2)

Valuation of goods under excise try to reach the intrinsic avlue of the goods. Most goods under tranbsaction value - sale price adjusted for factors. or for FMCG goods/ White goods- Under MRP less abatement.

Other methods like traiff value and capcity based levy also exist.

tranasation value or sales value is to considred 

under MRP based goods, specific abatement is also avaible 

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