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Valuation Under Central Excise Essay

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Below is an essay on "Valuation Under Central Excise" from Anti Essays, your source for research papers, essays, and term paper examples.

Valuation under Central Excise
Basis of calculation of duty payable i.e. Valuation
Modes of calculation of excise duty | Duty can be payable on basis of specific duty (based on weight, length, volume etc.), MRP based duty [section 4A], compounded levy, tariff value [section 3(2)], production capacity [section 3A] or on ad valorem basis [section 4]. |
MRP based valuation [section 4A] |
Products covered under MRP provisions | In case of about 110 products, duty is payable u/s 4A of Central on basis of MRP printed on the package, after allowing abatement at specified rates. MRP should be inclusive of all taxes and duties.The provision applies only when product is package intended for retail sale and is specified in a notification issued u/s 4A. |
MRP provisions are overriding | MRP provisions u/s 4A are overriding provisions. |
Assessable value when MRP not applicable | Even in case of products covered u/s 4A, where MRP provisions are not applicable, valuation will be on basis of ‘value’ u/s 4 i.e. Assessable Value.MRP provisions do not apply to free samples, package less than 10gm/10 ml, wholesale package or package above 25 Kg (50 Kg in some cases) |
Deemed manufacture of products u/s 4A | In case of goods covered under section 4A, packing or repacking and re-labelling is ‘deemed manufacture’. |
Incorrect MRP | Department can ascertain MRP if MRP not declared or incorrectly declared or obliterated. Penalty can be imposed [section 4A(4)(a) of Central Excise Act]. |
Basic requirement of Assessable Value [section 4] |
Transaction value as assessable value | When duty is payable on ad valorem basis, it is payable on assessable value as defined in section 4 of Central Excise Act.‘Transaction Value’ is taken as Assessable Value only if goods are sold at the time and place of removal, buyer is unrelated and price is sole consideration [Section 4(1)(a) of Central Excise Act]. |
What is transaction value | Transaction value is the price paid or...

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"Valuation Under Central Excise". Anti Essays. 13 Dec. 2018


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Valuation Under Central Excise. Anti Essays. Retrieved December 13, 2018, from the World Wide Web: http://teachingsail.com/free-essays/Valuation-Under-Central-Excise-410918.html

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