EXCISE DUTY LIABILITY

[SURYAKANT MITHBAVKAR]

We have issued invoice on last day of the month i.e. 31.12.14 but our removal date is next day i.e. 01/01/15

Pl. advice excise duty liability is to be paid by 5th of January-15 or 5th of Feb-15

[Deepak Aggarwal]

Dear Sir,

Central Excise duty is payable on the removal of goods. Extract of relevant provision is below:

4.Duty payable on removal.-

(1) Every person who produces or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty livable on such goods in the manner provided in rule 8 or under any other law, and no excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided.

In your case removal date is 1-1-2015, so liability need to be discharged by 5th of next month i.e.5-2-2015.

Thanks

[PAWAN KUMAR]

Dear Sir,

As per my view, duty is to be paid by 5th February 2015 as goods removed on 01.01.2015 i.e. during January'2015.

[YAGAY andSUN]

Dear Suryakant,

Excise duty is payable on the removal of goods, as appropriately replied by Mr. Deepak and Mr. Pawan on this matter.

Regards

Neelam Taneja,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Yes sir, duty is to be paid on removal of goods.

However, if the date and time for removal of goods in the excise invoice is mentioned as 31.12.14, then it shall mean that goods has been removed on 31.12.14 from factory premises and duty shall therefore have to be paid on 05.01.15.

It would be advisable to pay duty on 05.01.15 to avoid any litigation, if any, in future.

For payment of taxes, the sooner they are paid, the better.

[PAWAN KUMAR]

Dear Sir,

As per my view, you need to pay duty on or before 05.02.2015 along with the liability for the month of January'2015

AI Summary

Excise duty payable on removal; due by the fifth day of the month after removal unless invoice shows earlier removal. Excise duty is payable based on the date of removal of goods; if removal occurs in a later month than the invoice date, duty is payable for the month of removal and must be discharged by the fifth day of the following month, whereas an invoice that expressly records an earlier removal date treats liability as arising in that earlier month with payment due by the fifth day of the subsequent month.