Whether royalty paid to govt. is excisable

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SOUTH ESTERN COAL FIELDS LTS. SOLD COAL TO ITS CUSTOMERS.

NOW THEY ARE ASKING MORE AMOUNT ON ACCOUNT OF EXCISE DUTY

IMPOSED ON THEM ON ROYALTY PART BY EXCISE INTELIGENCE.

 

WHETHER EXCISE WILL BE CHARGED ON ROAYALTY PORTION ALSO?

 

Replies (5)

I think Royalty do not come in the definition of Excisable Goods. Hence, should not be charged for the same.

your question is not in full.

The observaions from excise  team may be  duty amount  with assumtion  seling price would have been reduced to the tune of Royalty  amount paid . They feel  ass.val is lesser. Hene Excise dept suspects the duty is not paid on full material value.

Dear Shivani jee,

SECL is selling coal to trader/consumer. Levey of Excise @ 5% started w.e.f. 01-03-2011.

SECL charged Excise only on the amount charged by it on account of coal only. Now excise authority

asked SECL to pay excise on Royalty and Stowing Excise Duty also.

My view is Royalty and Stowing Excise Duty both are taxes .

And u/s 4 taxes will be deducted while calculating Transaction Value.

Thanks for reppy.

 

Sir

Royalty paid from its internal accruals,ie from its profit.-before the sales.

 

If  SEFL is purchased the coal and re-sells  - ED should be levied on Ass .value  ( ie  purchase value + proift)  ( that time royalty is also considering factor  Bcoz royalty is paid from profit).

if SEFL is   first stage delar / manufacture than Excise team only look into production cost and profit element on that ED levied and paid,

Like wise we pay sales comission to brokers ,team may not ask the duty on sales comission..

 

Dept . should  watch gaurd   any leakage or under valuation.

 

 

 

 

Originally posted by : shivani

Sir

Royalty paid from its internal accruals,ie from its profit.-before the sales.

 

If  SEFL is purchased the coal and re-sells  - ED should be levied on Ass .value  ( ie  purchase value + proift)  ( that time royalty is also considering factor  Bcoz royalty is paid from profit).

if SEFL is   first stage delar / manufacture than Excise team only look into production cost and profit element on that ED levied and paid,

Like wise we pay sales comission to brokers ,team may not ask the duty on sales comission..

 

Dept . should  watch gaurd   any leakage or under valuation.

 

 

 

 

this part is nicely explained .But what about Stowing Excise duty ? Isnt it tax ? why they are adding it in assessable value?


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