TaxTMI 
TaxTMI 
Tooling procedure
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....ooling procedure<br> Query (Issue) Started By: - Mridul Sethi Dated:- 14-12-2011 Last Reply Date:- 15-12-2011 Central Excise<br>Got 2 Replies<br>Central Excise<br>Pls clear me the tooling procedure in excise, how we calculate the perunit toolcost & how charge in bills...Mridul Reply By r.rajkumar kumar: The Reply: your question is not very clear. but i understand if your customer pays seprately ....
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....for tool, to produce the goods .you have to amoritize the tooling cost and chage excise for the amortize cost and duduct the amortize cost while sending the bill to the cusomer. since tools cost has already paid in advnace to produce the final goods . for amortization cost pl calcualte the cost takeing the life of the tools ,and no of the goods can be produced by the tools . this can be costed b....
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....y cost account or yourself. This is according to the valucation rules of central excise act 2000.tks Reply By Pradeep Khatri: The Reply: Amortisation of tooling cost supplied by buyer is required to be includibe for Central Excise Valuation. In central excise, if the buyer has supplied toolings, its cost has to be amortised and included in assessable value for the purpose of calculation of ce....
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....ntral excise duty. Exhibit: - Calculation of Amortisation cost Rs. Gross Value of capital Goods (say) 500,000.00 Inputs/shots expected 100,000.00 Amortisation cost per piece to be added in assessable value for calculation of excise duty 5.00 Description Rate of Tax Ass. Value only for Calculation of Excise Duty Invoice Value chargable by supplier to customer Price charged by the supplier....
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.... for Input 'X' 45.00 45.00 Add: - Amortisatio cost of Machine (per piece of Input) 5.00 - Assessable value under Section 4 of the Act 50.00 45.00 Excise duty 10.30% 5.15 5.15 Taxable Amount for charging of VAT/CST (as the case may be) - 50.15 VAT @ 5% 5% - 2.51 Total Invoice Value 52.66 Amortisation of tooling cost supplied by buyer not includible for sales tax valuat....
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....ion - Further, In Morioku UT India v. State of UP (2008) 224 ELT 365 =15 VST 559 (SC), it has been held that there is no similar provision of adding cost of additional consideration in UP Trade Tax Act and hence such cost is not to be addible. Pict<br> Discussion Forum - Knowledge Sharing ....