Freight Calculation on Invoice

[Mridul Sethi]

Sir, I m working in manufacturing concern, & our one party asks us to show freight charges separately after sales tax calculation, as not to charge sale tax on that freight value, but as per our ERP setting we can calculate excise duty on that (freight+Basic rate) but freight cost does not show at assessable value place only basic rate shows there fore excise duty calculation is correct but assessable value showing is wrong, pls tell me know that it is neccessary to show exact assessable value in front of excise duty & if any notification or rule related to it

AI Summary

Assessable value: reimbursed freight excluded so excise duty is calculated on the transaction value, not on freight.
Where a contract is ex works and outward freight and insurance are reimbursed by the buyer, those reimbursed charges are not includible in the assessable value for excise; duty must be computed on the transaction value (basic price) while freight and insurance are shown separately on the invoice.