Differecne duty on Depot sales

[Swapneswar muduli]

Dear Sir,

We sales our Non MRP items to our Depots and from depots further sale to our various branches.

Suppose one item whose assessable value is 100 for clearance from the factory on a particular date. but the same dates our highest Aggregate quantity sale of allover our branches is say 110.

So in the above case ₹ 110 is our total consideration from dealer we don't charge excise duty extra in commercial invoice so we assume that ₹ 110 is including Excise duty so we calculate the differential duty on 110-100=10 we consider ₹ 10 is including Excise duty 12.50% so we make back calculation 10 is 112.5% so 100% is 8.88 so we paid excise duty on 8.88 12.50%.

So my question is it is right way for calculation of difference duty on depot sales or not.

Regards

Swapneswar Muduli

AI Summary

Excise Duty on Depot Sales: Calculate Duty on Price Difference, Not as Cum Duty Price. Method Confirmed Correct. A query was raised regarding the calculation of differential duty on depot sales. The company sells non-MRP items from the factory to depots, which are then distributed to branches. The assessable value for factory clearance is 100, while the total consideration from branches is 110. The company assumes 110 includes excise duty and calculates duty on the difference of 10. A response clarified that excise duty should be paid on the 10 difference, as it cannot be treated as a cum duty price. The method of calculation was confirmed as correct.