destination freight can be included in assessable value under central excise rule

[Asked by Guest]

dear experts,

pls.clarify that if we sell dutiable goods to our buyer which is at PUNE .and price term & delivery is decided on FOR.

so now making an invoice freight from removal of factory to buyer's destination will be included in assessable value and duty will be calculated on whole ass. value ..and price term & delivery. term will be disclosed as a FOR in Invoice ?

2) or we can charge separate freight in invoice after calculating Duty and price term and delivery term will be shown as a FOR in Invoice... or price term will be : exw & del. term will be : FOR.

pls. clarify how to show freight and what will be price term & delivery term to be shown in Invoice?

regards,

manan

AI Summary

Destination freight inclusion: freight to buyer's doorstep under FOR delivery forms part of assessable value and VAT.
Freight to the buyer's destination under a FOR delivery term is includible in the assessable value for central excise because sale and transfer of possession occur at destination; freight cannot be charged separately after duty calculation. The same rule governs VAT, with expenses until ownership transfers forming part of the sale price. If VAT is treated as payable at factory gate, the place of removal is the factory gate, altering tax incidence.