EXCISE DUTY
Ram Prakash Gautam
(Querist) 06 May 2011
This query is : Resolved
Dear Sir,
Kindly clarify that :-
a)Unit having retail sale up to 8.9 crore in the previous yr what is liability towards excise duty and what formalities are required
to be done by the manufacturer.
b) if the previous yr retail sale is more than 9 cr and less than 12 cr what is the exemption available to him
thanking you
R.Ramachandran
(Expert) 06 May 2011
Dear Mr. Ram,
I do not know whether you are asking a real question, or an imaginary question. This doubt arises, because, though in your profile you have stated that you are a Branch Accounts Manager, your query does not match with the minimum knowledge expected of a person with your profile.
You should understand that Excise Duty is being paid on the 'manufacture' of goods based on its transaction value and also the tariff classification and rate of Excise duty Applicable.
The turnover of retail sale has nothing to do with the Excise Duty at all. On retail sale, you will only have to pay Value Added Tax and not Excise Duty.
Therefore, please come up with a real fact situation and your query, so that an appropriate answer could be given.
Ram Prakash Gautam
(Querist) 07 May 2011
sir, i understand but excise is new in garments ind. ..... i have read it in my final course ... but my g.m. is not try to understand ........ my advocate has cleared this point ... but he dont und.
actually my comp. makes garments & export that & some domestic my consignee comp. is sale it in retail in india....delhi,mumbai... & some r my domestic debtors .... my turnover is app. 9 crore...& as per my advocate excise is applicable .......
R.Ramachandran
(Expert) 07 May 2011
Dear Mr.Ram,
This is exactly what I have been telling all queriests. They should first give their facts correct and then ask the query.
Take your case. You did not say in the first instance that your company makes garments. If only you had told this, my answer would have been different.
Now, coming to your specific query.
The 'branded' garments are now subject to Excise Duty with effect from 1.4.2011. Therefore, when you clear the 'branded' garments from your manufacturing factory, Excise duty is leviable at the applicable tariff rate on 45% of the M.R.P. value declared on the garment.
Ram Prakash Gautam
(Querist) 07 May 2011
sir,
In fact yesterday I would like to ask one question that if my company is listing under "branded garments" and my last year's (domestic sale) turn over was above 4 crore, is there any kind of exemption is there for me in current year ??? and if my current (domestic sale) turnover will be around 6-7 cr., is there any exemption will be there for me next year ??
One more and important thing, i would like to point out that Excise applicable from 01-03-2011 @ 60% and revised on 22-03-2011@ 45%.
Guest
(Expert) 07 May 2011
Mtr. Ram,
When your boss is not ready to listen to your interpretation or even the company's lawyer, how do you expect hm to get satisfied from the solutions provided on fractional queries in this forum? You may better consult some experienced advocate like Mr. Ramachandran along with the records on going through which he may convince your boss.
Fractional queries can attract only misleading and confusing replies, as Mr. Ramachandran has already pointed out.
