Assessable value: excise duty
mohan sehgal
(Querist) 27 March 2014
This query is : Resolved
Iam an Excise Duty payee assesse.. i would be allowing Trade Discounts such as Prompt payment Discount and annual Turnover discounts to my customers from 2014-2015..As per Board clarifications such discounts are allowed to be deducted for calculating assessable value..How should I proceed for filing my monthly E.R.'s.as I would be knowing the quantum of Trade Discounts allowed subsequently after supply of material/goods.at a later stage when annual turnover target is achieved and cash discount availed by my customers...
ajay sethi
(Expert) 27 March 2014
consult your excise consultant
malipeddi jaggarao
(Expert) 28 March 2014
Consult your tax consultant.
The following rule of Central Excise may be useful:
Rule 7. Provisional assessment.-
(1) Where the assessee is unable to determine the value of excisable goods or determine the rate of duty applicable thereto, he may request the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, in writing giving reasons for payment of duty on provisional basis and the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, may order allowing payment of duty on provisional basis at such rate or on such value as may be specified by him.
(2) The payment of duty on provisional basis may be allowed, if the assessee executes a bond in the form prescribed by notification by the Board with such surety or security in such amount as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, deem fit, binding the assessee for payment of difference between the amount of duty as may be finally assessed and the amount of duty provisionally assessed.
(3) The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall pass order for final assessment, as soon as may be, after the relevant information, as may be required for finalizing the assessment, is available, but within a period not exceeding six months from the date of the communication of the order issued under sub-rule (1):
Provided that the period specified in this sub-rule may, on sufficient cause being shown and the reasons to be recorded in writing, be extended by the Commissioner of Central Excise for a further period not exceeding six months and by the Chief Commissioner of Central Excise for such further period as he may deem fit.
(4) The assessee shall be liable to pay interest on any amount payable to Central Government, consequent to order for final assessment under sub-rule (3), at the rate specified by the Central Government by notification issued under section 11AA or section 11 AB of the Act from the first day of the month succeeding the month for which such amount is determined, till the date of payment thereof.
(5) Where the assessee is entitled to a refund consequent to order for final assessment under sub-rule (3), subject to sub-rule (6), there shall be paid an interest on such refund at the rate specified by the Central Government by notification issued under section 11 BB of the Act from the first day of the month succeeding the month for which such refund is determined, till the date of refund.
(6) Any amount of refund determined under sub-rule (3) shall be credited to the Fund:
Provided that the amount of refund, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to-
(a) the duty of excise paid by the manufacturer, if he had not passed on the incidence of such duty to any other person; or
(b) the duty of excise borne by the buyer, if he had not passed on the incidence of such duty to any other person.
T. Kalaiselvan, Advocate
(Expert) 28 March 2014
As advised by experts, better consult a local tax consultant in person so that he can solve the issues as per the circumstances.
