TMI BlogAssessable Value in the case of Goods captively consumed-Addition of Profit- Reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... oods captively consumed-Addition of Profit- Reg. I am directed to refer to instructions contained in Board's letter F.No. 6/64/80-CX.1 dated 6.12.80, Circular F.No. 6/72/85-CX.1 dated 11.3.86 and Issue 'A' of Section 37B order No. 24/14/93 dated 31.12.93 regarding the method to be followed for determining assessable value of goods captively consumed. The Board in its order dated 31.12.93 issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The matter has been further examined in consultation with the Cost Accounts Branch of Department of Expenditure. Board has observed that the method of calculation provided under Rule 6(b) (ii) of the Central Excise (Valuation) Rules, 1975 is to ascertain the nearest equivalent of the normal price. Therefore, while determining the cost of production of captively consumed goods during the current ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The profit margin of the previous year as arrived at step (ii) as a percentage of cost of production has to be loaded to the cost of production of the impugned goods derived at (i) above for the current year to arrive at the assessable value of captively consumed goods. C.A. certificate and the loss and profit statement should be scrutinised carefully, in the light of these guidelines and should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly consumed goods will also include applicable interest, depreciation etc. 2. As regards the methodology of determining percentage of profit with reference to sale of the previous year and applying it is to the cost of production of the present year (which presently in vogue), the existing methodology may continue. 3. It is clarified that profit before tax should be related to the net-sales (t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
