Rate Difference

[Naresh Antil]

Dear Sir

I want to know that if we are making debit note for rate difference so we should calculate the excise for it or not please suggest me .

For example :- Material received @138 while actual rate was 137.75 for 100 kgs

Than difference is .25 so basic amount will be .25*100=25

Add Vat @4.2% 1.05

Total amount is 26.05

or

Excise duty will be calculated

AI Summary

Debit Note for Rate Difference Must Include Excise Duty and Sales Tax for Short Material Receipt A user inquired about whether to calculate excise duty when issuing a debit note for a rate difference in material pricing. The example given involved a discrepancy of 0.25 per unit for 100 kgs, totaling 25, with VAT added. The response advised that in cases of short receipt of material, a debit note should include excise duty and sales tax, as Cenvat credit cannot be claimed for material not received or short received.