MRP rate cleaance - ER 1 Ret

[venkat eswaran]

Dear All,

We are paint manufactureres and clearing goods under MRP rate and paying excise duty after abetement. What is the maximum litres in a single pack we can clear under MRP? we are doing now up to 20 ltrs in a single pack under MRP and paying excise duty under abetement.

Some mfg units asking paints for more than 25 ltrs in a single pack under their Purchase Order. Can we clear and pay excise duty based on their PO rate without any abetement since customer are manufacturer.

In ER1 return whether we have to show separately without MRP clearance and MRP clearances.

Kindly give your valuable suggessions

Thanks

Venkat

[Mahir S]

Sir,

The maximum single pack that you can clear under MRP is 25 litres.

yes, you can clear paints to manufacturers for more than 25 ltrs in a single pack under their Purchase Order, and clear and pay excise duty based on their PO rate without any abetement.

yes, in ER-1 returns you have to show the MRP clearances and non-MRP clearances separately and also in RG-1 REGISTER.

[venkat eswaran]

Thank u very much Naveed sir

Venkat

[Mahir S]

Yeah, thanks for d compliments.

AI Summary

MRP clearance limit affects excise duty treatment; packs above the limit can be assessed at PO rate without abatement.
Maximum permissible pack size for MRP clearance is limited to twenty five litres. Sales in single packs exceeding the MRP clearance limit to manufacturers may be cleared and assessed for excise on the purchaser's PO rate without MRP abatement. MRP clearances and non MRP clearances must be shown separately in the ER 1 return and recorded in the RG 1 register.