TaxTMI 
TaxTMI 
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.
MRP is Rs 190 & P O Quote Rs 225
24 Apr 2012 
1 Reply 
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Excise duty valuation: duty arises on the invoiced sale price; amend purchase orders to match MRP if feasible.
Excise duty is payable on the invoiced sale price; if the seller bills at the higher purchase order price, duty is calculated on that billed amount. It is recommended to amend the purchase order to match the MRP so duty is charged on the lower MRP where commercial margins allow. (AI Summary)
Excise duty is payable on the invoiced sale price; if the seller bills at the higher purchase order price, duty is calculated on that billed amount. It is recommended to amend the purchase order to match the MRP so duty is charged on the lower MRP where commercial margins allow. (AI Summary)