Sir,
Pls let me clear that, for excise duty calculation is discount contant is considered or not. Actually we raise bill a party in the below manner.
| Qty | 100 |
| Basic Price | 161.54 |
| Basic Value | 16154.00 |
| BED@10% | 1615.40 |
| Cess @ 3% | 48.46 |
| Total | 17817.86 |
| Less: Discount @ 1.65% on Basic Price | 266.54 |
| Balance Value | 17551.32 |
| Sales Tax @ 2% | 351.03 |
| Bill Value | 17902.35 |
My query is that is always excise duty is charged irrespective of discount as shown in above calculation.i.e.can we not charge discount on Basic price & then do billing on balance amount. Pls clear it.
Excise Duty Calculated on Basic Price Before Discounts, Consensus Confirms; References to Circulars and Manuals Provided A user inquired about whether excise duty should be calculated on the basic price before or after applying a discount. The discussion involved multiple responses. One respondent confirmed that excise duty is calculated on the basic price, aligning with legal standards. Another provided references to specific circulars and manuals for further clarification. A participant argued that genuine trade discounts known to the customer before the removal of goods should be deductible from the basic price. Overall, the consensus was that excise duty is charged on the basic price, with discounts applied afterward. (AI Summary)
TaxTMI 
TaxTMI 
