PAYMENT OF DUTY

[BHARAT PRADHAN]

DEAR SIR MY QUESTION IS , "A" COMPANY IS SISIER CONCERN COMPANY OF "B" BUT  "B" COMPANY  IS PURCHSED SOME ITEMS FROM "A" COMPANY FOR PROJECT WORK UNDER PGCIL CO. , BUT  "B" COMPANY BILLING TO PGCIL MORE THAN PURCHSED BILL. , OBJECT QUESTION IS DIFFERENE AMOUNT OF DUTY CAN BE PAYMENT.

N.B-TWO COMPANYS ARE MANUFACTURING CO.

[YAGAY and SUN]

If the B company is acting as Depot or Branch of the A company then it is liable for the payment of differential excise duty as mentioned in the valuation laws.

AI Summary

Differential excise duty applies where a related entity acts as depot or branch and bills above purchase price.
If the buyer-company functions as a depot or branch of the selling manufacturer, intra-group pricing where the billing exceeds purchase price will be treated under valuation rules as a related-party movement and the buyer-company is liable to account for the differential excise duty arising from that excess.