amortization cost is applicable on foc sale, Central Excise

[sagar shekhar]

dear sir,

i have send some part on FOC invoice to our customer can you please confirm amortization is applicable or not

Posts / Replies

[YAGAY AND SUN]

Yes, it is applicable. Since Excise duty is on removal, not on sales of goods.

[PARTHASARATHY V]

When the Mould, Dies or other products provided to manufacture of agreed product, which will cover under the Valuation Rule 6 of 2006 ( which includes technical drawing, kowhow etc). Clearance made from supplier must suffer excise duty, whether it is for sale or FOC. Excise duty to be charged along with amortization cost for the goods cleared.