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TOOL AMMORTISATION MATTER

Central Excise - Started By: - NIMISH SHAH - Dated:- 3-6-2015 Last Replied Date:- 4-6-2015 - DEA SIR,WE NEED PROPER CLARITY ON FOLLOWING.We are still puzzled & confused about TOOLINGS AMMORTISATION VALUE TO BE CHARGE IN INVOICE.PROCEDURE IS AS FO .....

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S 25 % ADVANCE. WE MAKE TOOL IN 2 MONTHS, RAISE INVOICE OF RS. 2,87,875.00 & TOLL SEND TO BUYER WITH INVOICE. BUYER PAYS BALANCE TOWARDS TOOL DEVELOPMENT. BUYER RETURNS TOOL UNDER 57 F 4 & PLACE ORDER FOR SUPPLY OF CASTING 1,00,000 PCS IN ONE .....

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ON IS THAT WE HAVE TO CHARGE TOOL AMMORTISATION VALUE ON FINAL COMPONENT VALUE OF RS. 100.00, SAY EX. RS. 1.00 AS TOOL AMMORTISATION COST, TOTALS RS. 101.00 P.P. ON THAT EXCISE DUTY NEED TO BE PAID.WHILE ON TOOL DEVEOLEMENT EXCISE DUTY IS PAID & .....

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