duty on notional interest

[chiranjilal meena]

central excise duty liability on notion interest on security deposit

[K Balasubramanian]

There is no excise duty on notional interest unless the sale price is influenced by the DEPOSIT and it is the responsibility of the Revenue (CBEC) to prove that price charged is less compared with supply to other parties.

AI Summary

Notional interest: no excise duty unless deposit influences sale price; revenue must prove price suppression. No excise duty arises on notional interest on a security deposit unless the deposit demonstrably influences the sale price; if so, the notional interest may form part of the taxable value, but the revenue must prove that the price charged was lower by comparison with supplies to other parties.