Payment of Excise Duty

[chaganti srinivas]

Dear Mr.Ramakrishna, furhter to your reply to issue id no. 1307, Do we need to pay excise duty on the differential price for the sale price made from depot to the sale price considered from factory?. Please give your mail id also. Thanks srinivas

[Mukesh Kumar]

No, there is no excise duty payable on differential sales price. However, at the time of removal from the factory, you need to get the sale price of the goods at the depot at the time of removal. Excise duty is payable on that price. Later it is immaterial that goods are being sold at higher or lower price.

AI Summary

Excise duty basis determined by sale price at depot; subsequent price differences are immaterial for assessment Excise duty is not chargeable on subsequent differences between factory and depot sale prices; the tax base is the sale price at the depot ascertained and recorded at the time of removal from the factory, and later changes in the sale consideration do not affect duty liability.