TaxTMI 
TaxTMI 
A product gifted (not sold) by a manufacturing concern(say car by Maruti Udyog) in any contest is liable to excise duty or not?
Gift is liable to excise duty or not
30 May 2012 
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Excise duty on gifted goods: removal treated as taxable event, VAT not payable and input credit extinguished.
A gift of manufactured goods is treated as a removal subject to excise duty; VAT is not payable but input tax credit used in manufacture is extinguished. Duty is to be computed on the assessable value of the removal rather than on a mere commercial or promotional valuation. (AI Summary)
A gift of manufactured goods is treated as a removal subject to excise duty; VAT is not payable but input tax credit used in manufacture is extinguished. Duty is to be computed on the assessable value of the removal rather than on a mere commercial or promotional valuation. (AI Summary)