9911796707
TMI BlogMRP Based valuation in Central ExciseX X X X Extracts X X X X X X X X Extracts X X X X ..... MRP Based valuation in Central Excise X X X X Extracts X X X X X X X X Extracts X X X X ..... procedure of valuation of calculation of central excise duty may be understood with the following example: MRP is affixed on product "X" is Rs. 100/-. Rate of Rebate is 40% in terms of notification no. 2/2006. Rate of Excise Duty is 16% and Cess 3% (2% + 1%). Rate of Sales Tax (VAT) is 3%. Whole sale price of the product is Rs. 65 with duties of excise and local taxes. Now for the purpose of Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise duty the following steps should be taken: 1 MRP Rs. 100 2 Less Rebate @ 40% Rs. 40 3 Value on excise duty to be paid Rs. 60 4 Amount of Excise Duty of Rs. 60 Rs. 9.888 a. Basic Excise Duty @ 16% = Rs. 9.6 b. Education Cess @ 2% = Rs. 0.192 c. SH Education Cess @ 1% = Rs. 0.096 5 For the purpose of calculation of excise duty - actual sale price to be ignored. 6 Local taxes li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke sales tax shall be ignored 7 Any discount whether quantity discount / volume discount or performance discount shall be ignored 8 All other adjustments prescribed under section 4 shall be ignored. 9. Provisions of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 shall be ignored. Reply By Deepak Jha as = Dear Sir, If Mrp is 100 and abatment is 30 % and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling price is ₹ 80 than excise duty will be applicable on (100-30% = 70 or excise duty will be applicable on selling price Of ₹ 80.
waiting for your valuable reply
Thanks & Regards,
Deepak Jha
Dated: 18-4-2016 X X X X Extracts X X X X X X X X Extracts X X X X
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