Valuation under Excise

[Arti Gupta]

We have done some repair work under warranty period which is amount to manufacture. We have to supply it free of cost to our customer.

Please explain on what value we have to pay excise duty? Whether only on material value or on material + labour + other overheads or any other value.

Please clarify. Thanks

AI Summary

Excise Duty on Warranty Repairs: Rule 8 Requires Cost Plus 10% for Valuation Including Labor and Overheads A query was raised regarding the valuation for excise duty on repair work done under warranty, which must be supplied free of cost to the customer. The question was whether excise duty should be paid on the material value alone or include labor and other overheads. The response advised following Rule 8 of the valuation rules, which requires calculating the cost plus an additional 10 percent.