clarification about 2%ed.cess & 1% s & h Cess

[MEHUL ASHAR]

Respected Sir,

As regarding above subject, my query is that one of my clients is taking the benefit of noti.no.08/2003 which is about 1.5 crore exemption limit and as u know that FM has announced budget-2015 on 28-02-15 and he has removed 2% and 1% cess on excisable goods but my client, as he has to pay the excise duty on the closing stock of finished goods and raw material on 31-03-2015 then do I have to calculate 2% ed.cess and 1% s and h cess on closing stock or not.Please reply.

THANK U

[MUKUND THAKKAR]

please advise your client to pay only 12.5% need not to pay 2% and 1%. because closing stock is applicable only new rate.

AI Summary

Cess applicability clarified: closing stock falls under new excise rate; specified cesses not payable for excisable goods. Query whether abolished cesses must be computed on closing stock when the assessee benefits from a turnover notification; reply advises that closing stock is assessed under the new excise rate structure and the specified cesses are not payable, so only the underlying excise duty rate is to be applied to closing stock.