NCCD will be charged on Assessable value or on duty or MRP of Tobacco products

[Asked by Guest]

whether NCCD will be charged on Assessable value or on duty or MRP of Tobacco products

[KASTURI SETHI]

Assessable value is to be arrived at after deducting the percentage of abatement from MRP. On that value NCCD will be computed.

[YAGAY and SUN]

Abatement rate runs from a range 50% -55% for tobacco products depending on the classification and containing the pertcentage of tobacco in particulars product.

[KASTURI SETHI]

Section 4A of Central Excise Act is applicable.

[YAGAY and SUN]

Please refer appendix XI - MRP Based assessment - Percentage of abatement read with Schedule III of the C.E.Tariff and appendix X of the NCCD i.e. Seventh Schedule to Finance Act, 2001 (section 136)

[Manoj Jain]

Whether NCCD is applicable on chewing tobacco and cigarette , if yes , how to deposit it because GST Portal is not having any option to deposit it ?

[KASTURI SETHI]

13.

Is NCCD leviable on tobacco products from 1st July, 2017? What will be the method of valuation for levy of NCCD?

• NCCD shall continue to be levied on tobacco and tobacco products at the rates as applicable prior to 1st July, 2017. • Since NCCD is a duty of excise, the valuation for the purposes of charging NCCD shall be as per the Central Excise Law read with the Valuation Rules under Central Excise Law.

[KASTURI SETHI]

This is an extract of FAQ. GST applicable.

No knowledge on this issue about Common Portal System.

AI Summary

NCCD valuation on tobacco products uses assessable value after MRP abatement, governed by central excise valuation rules.
NCCD on tobacco products is levied on the assessable value calculated after applying the prescribed abatement to MRP; abatement varies by product classification and tobacco content. Valuation for NCCD follows Central Excise law and Valuation Rules, with Section 4A applicable and MRP-based assessment appendices and tariff schedules determining the abatement basis.