Stock Transfer

[Samik Chaudhuri]

Sir

We are manufacturing Co. Now we would like to stock Transfer our finished goods at other states. My question is :at the time invoicing whether we charge excise duty on Assessable value including freight or not,if not then we mention the freight in the invoice. Please reply me urgently.

With thanks and regards

Samik Chaudhuri.

[YAGAY andSUN]

Dear Samik,

It is a settled legal position that excise duty is on manufacture not on the freight. On freight Service tax would be payable.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Excise duty on manufacture excludes freight, which should be invoiced separately and attracts service tax. Excise duty applies to the value attributable to manufacture and does not include freight; freight should be shown separately on invoices for interstate stock transfers and is liable to service tax rather than excise, while the assessable value for excise excludes freight.