payment of excise duty

[Guest]

Dear All,

           I have some confusion for calculating the amount of Excise Payable. So, I want to know that How we can calculate of payment of Excise Duty. Is we can set-off it with input of cenvat.

Regard

Vikram

[Mritunjay Kumar]

Dear vikram, 

There is Excise valuation Rules for determination of value on which you will have to pay excise duty. After determination of value as per Central Excise(Determination of value) Rules, 2000, you have to pay excise duty at the rate of 12.36.

The amount determined as per above rules will get deducted by the CENVAT credit you availed on the purchase of excisable raw materials and input service. The balance amount, you have to pay as Excise duty.

AI Summary

CENVAT credit set-off reduces excise duty payable once value is determined under central excise valuation rules. Calculation of excise payable requires determination of value under the Central Excise (Determination of Value) Rules, 2000 and application of the excise rate on that value; the resulting excise liability is then reduced by CENVAT credit availed on inputs and input services, and the balance is payable as excise duty.