Gift is liable to excise duty or not

[Mridul Sethi]

A product gifted (not sold) by a manufacturing concern(say car by Maruti Udyog) in any contest is liable to excise duty or not?

[YAGAY andSUN]

Central Excise duty is on Manufacturing of goods and for convenient purpose, it is being collected on the removal of goods.

Therefore, Central Excise duty will be paid on such kind of removals.  VAT will not be payable but the ITC on inputs involved in manufacturing of car will be burnout.

[MANDAVILLI RAMAKRISHNA]

excise duty to be paid basing on the assessable value but not on the basis of commercial value. so you have to pay.

[Harishanker Patel]

Sir,

What will be the assessable value for a gifted car whether it may be only CAS4 amt or CAS4+10% or any other.

AI Summary

Gifted Cars Subject to Excise Duty; Duty Based on Assessable Value, Not Sale Price; VAT Not Applicable A discussion on whether a gifted product, such as a car from a manufacturing company, is subject to excise duty received three replies. It was clarified that excise duty applies to the manufacturing of goods and is collected upon removal, even if the product is gifted and not sold. VAT is not applicable, but the input tax credit on manufacturing inputs is affected. The duty is based on the assessable value rather than the commercial value. A question was raised about determining the assessable value for a gifted car, suggesting it could be CAS4 amount or CAS4 plus an additional percentage.