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TMI BlogExcise Duty Liability on FOC Value PO Rate increase recd from Previous PeriodX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, we have received Rate difference from our Customer PO Rate is increased from April'13 to Dec'13, we have paid differential excise duty interest on rate increase amount. at the time of dispatch of finished goods we have paid excise duty on PO Value + FOC Value + Tooling Amortization Royalty percent add on (PO Value + FOC Value + Tooling Amortization) as per excise valuation rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. my query is: Excise Duty is payable at the time of received of rate increase is payable on. 1- Rate difference received from our Customer Or 2- Rate difference Received + (FOC Value + Tooling Amortization + Royalty percent ) Please guide us in this matter. Regards, Rahul Patel - Reply By Pradeep Khatri - The Reply = Dear Rahul, Please choose the option No. 2 for paying the C.E. Du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty on rate difference. This would be according to the Valuation Rules of Central Excise. Regards, Team YAGAY SUN (Indirect Tax Consultants) - Reply By Rahul Patel - The Reply = Sir, Please give any Law Rule reference in this matter. Regards, Rahul Patel - Reply By Naveed S - The Reply = As the money value of additional consideration flowing directly or indirectly from the buy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to the assessee for e.g. in your case - FOC Value + Tooling Amortization Royalty percent already added in the initial value, hence conditions of Rule 6 of Central Excise Valuation (Determination of Price of Excisable goods) Rules, 2000 , already fulfilled. Hence, in your case, the differential duty shall be payable on the differential value as described at option No. 01. However, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Royalty per cent shall be required to be added to the differential value. However, if the rate differential value is marginal/negligible, then better to opt for option no. 02 to avoid any litigation in the matter. - Excise Duty Liability on FOC Value PO Rate increase recd from Previous Period - Query Started By: - Rahul Patel Dated:- 6-3-2014 Central Excise - Got 3 Replies - Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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