Excise Duty on Export goods

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..... Excise Duty on Export goods
Query (Issue) Started By: - Asa Dev Dated:- 5-11-2012 Last Reply Date:- 8-11-2012 Central Excise
Got 4 Replies
Central Excise
Dear Sir, We have an export contract on CIF UK Port basis. While making excise invoice, we have shown excise duty on CIF value. Now the excise department raised objection and asked us to charge duty on FOB value. Since there is no b .....

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..... ifercation of CIF value, how can we arrive the FOB Value? OR is there any option to charge Duty on CIF value. We charge duty on export goods and apply for rebate. Your kind suggestion / advice shall be appreciated. With regards Asa Dev 9528533773 [email protected] Reply By JAYARAMAN RAMAMURTHY: The Reply: Excise duty is to be charged on FOB value only and not on CIF value. u r required .....

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..... to arrive at fob value from cif value by deducting actual or appxt freight and insurance value.trust this clarifies ur reqmts regards jr Reply By Pradeep Khatri: The Reply: By applying the reverse caculation (Actual freight or 20% of the FOB Value whichever is less and insurance 0.125%) you may arrive at the FOB Value for calculation of Liability under Central Excise Duty. Reply By vijay kum .....

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..... ar: The Reply: the objection raised is correct. u have no option to pay duty on CIF value. u may arrive at the FOB value as suggested above. the excess duty paid will be paid back in cenvat credit account. strictly speaking, even the FOB value is not the proper value. it is the factory gate price which reflects the Section 4 value, as per Board's instructions in the matter, on which the rebate ha .....

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..... s to be computed. Reply By Krishna Talnikar: The Reply: The excise duty should be charged on basic/FOB value of your product. You can take it from your sales department either from PO given to the client or from the sales order raised by the sales department. You can also refer the calculation given by Mr Khatri.
Discussion Forum - Knowledge Sharing .....

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