Income tax
Asha
(Querist) 10 November 2012
This query is : Resolved
I am very much confused about following question,plz try following A company manufactured 12000 coloured TV during the year. Determine excise duty payable from the following particular: I) Retail price of TV Rs 5,000. It includes excise duty. II)Sold 8,000 TV to wholesaler.Discount allowed @ 20% on retail price. iii)TV sold in retail for Rs 2,000 iv)The balance 2,000 Tv not recovered from factory v)The company purchased input for manufacture of TV For Rs 3,00,00,000 It include basic excise duty Rs40,00,000 vi)The closing stock of input is Rs25,00,000 vii)The company is liable to pay basic excise duty @ 16% viii)The rate of abatement allowed is @ 35% of selling price.
Anirudh
(Expert) 11 November 2012
As the company purchased inputs worth Rs. 3 Crores on which excise duty of Rs. 40 lakhs has been paid, it is entitled to take CENVAT Credit of Rs. 40 lakhs.
Now the Company has made the following sales:
1. Whole sale = 8000 Nos. X (Rs.5000-1000 being 20% discount i.e. Rs. 4000 net) = Rs. 3.20 crores
2. Retail sale = 2000 Nos. x (Rs. 5000 - 35% rebate = 3250 net) = 65 Lakhs.
3. Therefore total sales = 3.85 lakhs.
4. Excise duty payable on total sales at 16% = 61.6 lakhs.
5. Since it has cenvat credit of Rs. 40 lakhs with it, it can adjust the same, and then pay the balance Rs. 21.6 lakhs.
Raj Kumar Makkad
(Expert) 19 November 2012
Noting remains to be added in the wise reply of Anirudh.
V R SHROFF
(Expert) 19 November 2012
nothing to add.
