amortization cost is applicable on foc sale

[sagar shekhar]

dear sir,

i have send some part on FOC invoice to our customer can you please confirm amortization is applicable or not

AI Summary

Amortization Costs Apply to Free-of-Charge Goods; Excise Duty Charged Under Valuation Rule 6 of 2006 A query was raised regarding the applicability of amortization costs on goods sent on a free-of-charge (FOC) basis. Two responses clarified that amortization costs are indeed applicable. The first response explained that excise duty is charged on the removal of goods, not their sale. The second response noted that when molds, dies, or other products are used in manufacturing, they fall under Valuation Rule 6 of 2006. Consequently, excise duty, along with amortization costs, must be charged on goods cleared, whether for sale or FOC.