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TaxTMI 
Excise Duty Liability on FOC Value PO Rate increase recd from Previous Period
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....xcise Duty Liability on FOC Value PO Rate increase recd from Previous Period<br> Query (Issue) Started By: - Rahul Patel Dated:- 6-3-2014 Last Reply Date:- 8-3-2014 Central Excise<br>Got 3 Replies<br>Central Excise<br>Sir, we have received Rate difference from our Customer PO Rate is increased from April'13 to Dec'13, we have paid differential excise duty & interest on rate increase amoun....
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....t. at the time of dispatch of finished goods we have paid excise duty on PO Value + FOC Value + Tooling Amortization & Royalty percent add on (PO Value + FOC Value + Tooling Amortization) as per excise valuation rules. my query is: Excise Duty is payable at the time of received of rate increase is payable on. 1- Rate difference received from our Customer Or 2- Rate difference Received + (FOC ....
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....Value + Tooling Amortization + Royalty percent ) Please guide us in this matter. Regards, Rahul Patel Reply By Pradeep Khatri: The Reply: Dear Rahul, Please choose the option No. 2 for paying the C.E. Duty on rate difference. This would be according to the Valuation Rules of Central Excise. Regards, Team YAGAY & SUN (Indirect Tax Consultants) Reply By Rahul Patel: The Reply: Sir, Pleas....
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....e give any Law Rule reference in this matter. Regards, Rahul Patel Reply By Naveed S: The Reply: As the money value of additional consideration flowing directly or indirectly from the buyer to the assessee for e.g. in your case - FOC Value + Tooling Amortization & Royalty percent already added in the initial value, hence conditions of Rule 6 of Central Excise Valuation (Determination of Price ....
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....of Excisable goods) Rules, 2000, already fulfilled. Hence, in your case, the differential duty shall be payable on the differential value as described at option No. 01. However, the Royalty per cent shall be required to be added to the differential value. However, if the rate differential value is marginal/negligible, then better to opt for option no. 02 to avoid any litigation in the matter.<br....
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