MRP is Rs 190 & P O Quote Rs 225

[Avinash Bhavsar]

Dear Sir,

Customer has given us the Purchase Order of Automobile Spare Os Rs 225 each but MRP is Rs 190 which rate is applicable for Excise Duty charge please gudie and under rule.

[YAGAY andSUN]

If you bill at Rs. 225 then you would have to pay the duty on 225.  It is advisable to get the PO amended to the extent of MRP of Rs. 190/- if you able to make profits while selling on Rs. 190/-

AI Summary

Guidance on Excise Duty: Apply Duty on Rs 225 if Billed, Consider Amending Order to Rs 190 for Lower Duty. A customer issued a Purchase Order for automobile spare parts at Rs 225 each, while the Maximum Retail Price (MRP) is Rs 190. The query seeks guidance on which rate to apply for excise duty. The response advises that if billing occurs at Rs 225, excise duty should be calculated on that amount. It is suggested to amend the Purchase Order to Rs 190 if profits are feasible at the MRP, to align the excise duty with the lower price.