Tooling procedure

[Mridul Sethi]

Pls clear me the tooling procedure in excise, how we calculate the perunit toolcost & how charge in bills...Mridul

AI Summary

Amortisation of tooling cost included in central excise valuation, increasing assessable value and affecting invoice tax charges.
Central excise valuation requires inclusion of amortisation of tooling cost supplied by the buyer in assessable value; the supplier must divide tooling cost by expected output to obtain a per unit amortisation, add that to the supplier's price to determine assessable value for excise duty, and then compute the excise and downstream tax charges accordingly.