TaxTMI 
TaxTMI 
TaxTMI 
Levy of NCCD
X X X X Extracts X X X X
X X X X Extracts X X X X
....evy of NCCD<br> Query (Issue) Started By: - Amresh kumar Dated:- 30-10-2020 Last Reply Date:- 3-3-2021 Central Excise<br>Got 11 Replies<br>Central Excise<br>Sir/madam, There were some conflicting views and judgments regarding levy of NCCD in post GST regime as there was no excise duty. Govt in the budget 2018 inserted a nominal excise duty by claiming that as a practice since no NCCD was being p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aid by some. Wether the assessee has to pay NCCD from July 2017 or from 2018 when it was inserted. Since it was a practice prevalent can the assessee be benefited by this. Since Finance Minister speech clearly says about it. Regards Amresh Kumar Reply By KASTURI SETHI: The Reply: Still NCCD is leviable on selected products. NCCD is exempted only if Central Excise duty is exempted on any prod....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uct. Have you perused the judgements of Supreme court in the case of HERO MOTOCORP LTD. reported as 2019 (366) E.L.T. 807 (S.C.) = 2019 (6) TMI 762 - SUPREME COURT and in the case Bajaj Auto Ltd. reported as 2019 (366) E.L.T. 577 (S.C.) = 2019 (3) TMI 1427 - SUPREME COURT ? Q. Wether the assessee has to pay NCCD from July 2017 or from 2018 when it was inserted ? Ans. Yes. What was the speech o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Finance Minister on NCCD ? Do you think speech has statutory force ? Finance Minister's speech is to be followed by notification. Reply By Amresh kumar: The Reply: Sir, That means no NCCD would be applicable before it was inserted in budget 2019 at ₹ 5 /1000. Wet July 17 to January 19 no NCCD can be charged. But based on instructions from the Board the dept is recording and issuin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g SCN even for the period July 17 onwards. Reply By KASTURI SETHI: The Reply: The department's view is correct. All my clients dealing in tobacco products are paying NCCD under GST regime. They were also paying NCCD in pre-GST era. No break between pre-GST era and post-GST regime. What is your product ? Reply By Amresh kumar: The Reply: Sir, Product is cigarettes. Reply By KASTURI SETHI:....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The Reply: Cigarette is a tobacco product. NCCD is applicable. On tobacco products Central Excise duty and GST both are leviable. My clients manufacture snuff and they are paying NCCD. They have not discontinued NCCD after implementation of GST. All manufacturers of tobacco products are paying NCCD. Reply By CABIJENDERKUMAR BANSAL: The Reply: DEAR SIR The Section 136(1) of Finance Act 2001 i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mposes the NCCD on the tobacco products where excise duty is paid. Thanks Reply By KASTURI SETHI: The Reply: Yes.I agree with you. Reply By Sandeep Dutt: The Reply: Dear sir Can you please explain the calculation of BED, NCCD, Compensation Cess and GST on a chewing tobacco product having MRP. 100/- RS. Reply By KASTURI SETHI: The Reply: Dear Sandeep Dutt, You know MRP includes all taxes....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and profit. I am taking only these components as I am not aware of other components/elements, if any. Suppose MRP of chewing tobacco is ₹ 100/- (You cannot go beyond this price while selling). To arrive at taxable value we must know the rates of duty/GST/Comp.Cess. 1.GST 28% 2. BED : 0.5 % 3. Compensation Cess { 81 % 4. NCCD :25% 5. Profit 10 % (Presumption) Total duty/tax : 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....44.50 % Taxable Value : ₹ 69.21 (Approximate) MRP : ₹ 100/- (Rounded off). Pl. Check and let me know your purpose is solved or not. Reply By Sandeep Dutt: The Reply: Dear Kasturi ji, I basically want to know how the different taxes will be charged and on what value of MRP 100 Rs... Which taxes or cess will be charged on abated value and otherwise... And how to arrive at taxab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le value for each duty and cess... Reply By KASTURI SETHI: The Reply: Dear Sandeep Dutt, I have computed the assessable value on the basis of MRP of ₹ 100/- which is assumed. Pl. let me know what is actual MRP of your product and I shall guide how to calculate either on this forum or through email. If you want to email, you can. No fee will be charged. I do not charge fee for small queri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es.<br> Discussion Forum - Knowledge Sharing ....