TaxTMI 
TaxTMI 
Dear Sir,Please advise, if the customer supply machinery free of cost under the rule 4(5) (b), would there any impact on calculating the transaction value of manufactured product.
Transaction Value
12 Mar 2014 
3 Replies 
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Amortization of tooling costs increases assessable value for excise while VAT is excluded from that amortized amount.
Amortize the cost of machinery, tools, jigs or dies over producible units and include the per piece amortized amount in the assessable value for central excise; disclose this per unit tooling cost on the invoice. VAT/CST should not be charged on the amortized tooling component and must be excluded when determining the taxable price for VAT/CST. (AI Summary)
Amortize the cost of machinery, tools, jigs or dies over producible units and include the per piece amortized amount in the assessable value for central excise; disclose this per unit tooling cost on the invoice. VAT/CST should not be charged on the amortized tooling component and must be excluded when determining the taxable price for VAT/CST. (AI Summary)