TaxTMI 
TaxTMI 
Valuation of Jobwork when material dicrectly supplied by principal manufacturer
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....aluation of Jobwork when material dicrectly supplied by principal manufacturer<br> Query (Issue) Started By: - Mehul Pandya Dated:- 22-7-2014 Last Reply Date:- 23-7-2014 Central Excise<br>Got 3 Replies<br>Central Excise<br>Sir,Valuation of Jobwork includes Cost of material, processing charges, freight and profit. My query is does cost of material includes excise and sales tax also when raw materia....
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....l supplied directly by the principal manufacturer and payment done by principal manufacturer. Some Particulars of the CASE 1. ABC - Principal Manufacturer2. XYZ - Jobworker3. Final Product - TIN Container4. Raw Material - TIN Plate5. Process - Manufacturing of TIN Container for the packing of Edible Oil6. Raw Material payment done by the ABC directly7. Freight Payment done by ABC directly.8. Fin....
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....al Product of ABC is Exempted from duty (Edible Oil)9. Job worker taking cenvat credit on Raw Material - TIN Plate. Illustration :-Rate per tin calculated by the jobworker Ass. Value of Raw Material (Tin Plate)Add: VAT/CSTAdd: Freight ------------------------- Basic Value of TIN (Manufactured) (without considering excise) Add: Job chargesAdd : ExciseAdd : CST / VAT -------------------------- Gros....
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....s Total (Billed to Principal Manufacturer) Query : (1) Whether excise should be considered while calculating cost of material to derive basic value of TIN manufactured or not. ?? (2) Is there any clarification / notification / circular in supporting to this ?? Your reply awaited. Thank you Reply By Pradeep Khatri: The Reply: Dear Mehul,In Texmaco Ltd. vs. CCE, 1995 (77) E.L.T. 501 (SC) = 1991 (7....
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....) TMI 109 - SUPREME COURT OF INDIA, Supreme Court had held that value of article was full intrinsic value of article including cost of material and components supplied free by the customer. Assessable Value will be full commercial value.This is for your kind information.RegardsTeam YAGAYand SUN(Managementand Indirect Tax Consultants) Reply By MUKUND THAKKAR: The Reply: Dear Mehul. In connection....
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.... of please refer rule 10 along with the rules 8.9. Mukund Thakkar Reply By PAWAN KUMAR: The Reply: Dear Sir, As per your query, the answer is as under : 1.Excise duty will not be considered. 2.You may read Ujaagar Print Case.<br> Discussion Forum - Knowledge Sharing ....