Differentials excise duty

[vuchcholla Bhaskar]

Dear Sir,

One of our supplier duty charged 12.5% instead of 15% and now they need to pay the differentials duty from Aprl'16 to till date.

Now the supplier which document is to be raised and how we will take the modvat benifit.

Thanks & Regards

Bhaskar

[MUKUND THAKKAR]

please advise your supplier to raise supplymentary invoice giving by reference of old invoices. take cenvat credit on basis of supplymentary invoice issue by your supplier.

[Mahir S]

YES, the supplier shall have to raise supplementary invoices as explained above.

However, the supplier shall also be liable to pay interest for such differential duty passed by them.

[Ganeshan Kalyani]

Mukund ji , i endorse your view. Also interest is applicable as said by Mahir ji.

AI Summary

Differential excise duty requires suppliers to issue supplementary invoices so buyers can claim cenvat credit and supplier bears interest. Supplier must issue supplementary invoices referencing the original invoices to rectify undercharged excise duty; the buyer may take Cenvat credit on the basis of those supplementary invoices. The supplier is liable to pay the differential excise duty and interest on the unpaid differential for the relevant period.