TaxTMI 
TaxTMI 
please clarify whether we need to pay excise duty for goods supplied to charitable institutions at free of cost. The trust is registered and eligible for exemption under IT. Thanks in advance
goods supplied to trust on charity.
06 Jan 2016 
2 Replies 
1110 Views Asked by
Excise duty on goods supplied to charitable institutions remains payable, including free samples assessed under valuation rules.
Charitable institutions are not entitled to a general exemption from central excise; supplies to trusts do not automatically escape duty. Free distributions and samples are treated as removals and must be valued and assessed under the prescribed valuation framework, applying the valuation principles equivalent to assessment at a margin above cost as set out in the valuation rules and Board guidance. (AI Summary)
Charitable institutions are not entitled to a general exemption from central excise; supplies to trusts do not automatically escape duty. Free distributions and samples are treated as removals and must be valued and assessed under the prescribed valuation framework, applying the valuation principles equivalent to assessment at a margin above cost as set out in the valuation rules and Board guidance. (AI Summary)