Excise Duty and Sales tax on Freight and Insurance

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..... Excise Duty and Sales tax on Freight and Insurance
Query (Issue) Started By: - vikas anand Dated:- 19-1-2017 Last Reply Date:- 23-1-2017 Central Excise
Got 5 Replies
Central Excise
Dear All, If the term of delivery is our ex-factory gate, but we are arranging Insurance and freight charges up to the buyer site. The same we are charging in the Invoice in below the line of Excise Duty & .....

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..... Sales tax amount and reimbursement made by the buyer. Please confirm Excise Duty and Sales tax will attract on Freight and Insurance. Please be note that the charging of Insurance from buyer is more than we are paying for Insurance companies. Reply By Ganeshan Kalyani: The Reply: If the place of removal is factory gate then freight should not be added to Assessable value to pay excise duty but .....

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..... if it customer door step then the same should be added to assessable value to pay excise duty. Sales tax is levied on sale price. Sale tax shall br charged on freight if it was agreed to a part of sale price. Thanks. Reply By KASTURI SETHI: The Reply: I concur with the views of Sh.Kalyani, Sir. In support most relevant case law is appended below:- 2015 (319) E.L.T. 221 (S.C.) = COMMR. OF C .....

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..... US. & C. EX., AURANGABAD Versus ROOFIT INDUSTRIES LTD. 2015 (322) E.L.T. 394 (S.C.) = COMMISSIONER OF C. EX., MUMBAI-III Versus EMCO LTD. Reply By Mahir S: The Reply: Excise duty does not appear to be payable; however the excess amount earned through the insurance charges collected from buyer is liable to be shown as profit in the books of accounts. Reply By YAGAY AND SUN: The Reply: We endor .....

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..... se the view of the experts. Reply By Ganeshan Kalyani: The Reply: The income shown on the credit side of the profit and loss account may be checked by the auditor for taxability of service tax.
Discussion Forum - Knowledge Sharing .....

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