CHANGE IN EXCISE DUTY FOR CHAPTER 84 & 85

[SURYAKANT MITHBAVKAR]

Govt. has reduced excise duty from 12 percent to 10 percent on capital Goods falls under chapter 84 & 85.

In our case we are manufacturer of Pharmaceutical Machinery falling under chapter 84 & 73 (Article of IRon & Steel consits Pipe Line)

 we manufacturing complete pharmaceutical liquid line consists Bottle washing Machine, Liquid filling & sealing machine, Turn Table, Labelling Machine  which require water pipeline for Bottle washing Machine  which falls chapter 73.

The above case our customer has reaised purchase order showing extra cost for Pipe line.

Please advice in view of the change of excise duty for only chapter 84 & 85. can we calculate two type of the excise duty in our invoice.  i.e. at the rate of 10 percent for  Bottle washing Machine, Liquid filling & sealing machine, Turn Table, Labelling Machine and at the rate of 12 percent for  water pipeline

[SHIVKUMAR SHARMA]

yes because pipes are falling under chapter 73.

SHIVKUMAR SHARMA

[Guest]

the latest change in financial budget the excise duty have reduce 12 percent to 10 percent . it is a change in the capital goods and all durable goods.

AI Summary

Excise duty classification: different tariff-classified components attract their respective rates on capital goods and accessories, permitting separate invoicing. The fiscal change reduced excise duty for capital-goods tariff headings covering machinery, but items classifiable under other tariff chapters remain subject to their own rates; consequently, separately classifiable components of a manufactured assembly may be invoiced and charged at their respective duty rates when correctly identified and valued.