Calculation of 400 lakhs for readymade garments

[deepak gulati]

Respected Sir,

My Client is having turnover of ₹ 450lakhs in the previous year detail is as under :-

100 lakhs for unbranded garments having RSP < Rs. 1000 ;

150 lakhs having RSP >Rs. 1000/-;

100 lakhs having value is less than ₹ 1000 ;

100 lakhs branded and having value > ₹ 1000

450 lakhs

in the previous year

Please explain how to calculate turnover of ₹ 400 Lakhs for previous year.

AI Summary

Clarification Sought on Central Excise Duty for Garments: Branded vs. Unbranded, RSP Impact on Turnover Calculation A client with a turnover of 450 lakhs from the previous year seeks clarification on calculating a turnover of 400 lakhs for readymade garments under Central Excise. The turnover includes different categories based on retail selling price (RSP) and branding. Replies indicate that unbranded garments with RSP less than 1000 are not accounted for, while branded garments with RSP above 1000 are liable for Central Excise duty. Exempted goods are included in the 400 lakh calculation but not in the 1.50 crore limit. Branded packaging of unbranded goods incurs duty as they use a brand name.