Respected All,
We supply some our components to our supplier on job work challan, and our supplier also add some more component to prepare one complete assembly.
Suppose the value of our components is Rs. 65.00 and the value of components added by our supplier, is Rs. 75/- including his labour. While making the Excise invoice to us, on what amount he will charge the excise duty ,on 75/- or including our cost also i.e. 135/-. and our cost will be deducted from the gross Invoice Amount.
please explain the process as per Excise guidelines.
Pradeep kaushik
Excise Duty Debate: Should Duty Apply to Supplier-Added Components or Total Value? Guidelines Suggest Total Value. A discussion on a forum addresses the issue of excise duty on components supplied to a supplier for assembly. The main query is whether excise duty should be charged on the value of components added by the supplier (Rs. 75) or the total value including the original components (Rs. 140). Responses indicate that excise duty should be charged on the total value, as per excise guidelines and valuation rules. Various contributors mention relevant excise rules and notifications, emphasizing that the job worker, treated as the manufacturer, is liable for the duty unless exemptions apply. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
