excise duties for free goods

[former_member371992]

Hi SD Experts !

  I need one clarifiaction....In free goods scenario, if we are giving 2 goods as frree for 10 goods, then whteher the excise is charged only for 8 goods(as 2 gooods are freee) or excise is charged for entire 10 goods....Pls help me....

Regards

Bala.

[srinu_s1]

Hi,

As per my knowledge, Once the material is manufactured that is liable for Excise duty, unlike sales tax is liable only at the time of sale is taken place.

Here even though you are sending the some goods at FOC basis, still the product is liable for Excise duty because it is moving out of your plant.

Thanks,

Srinu.

[Former Member]

Hi Bala,

Excise duties will be applicable on Free Goods also though you will not charge the basic Price for that material from the customer. The excise duties are applicable on the goods manufactured and moving out from the plant thus it should be payable for free goods as well.

Regards,

Ashutosh

[Former Member]

Hi Bala,

Pls READ through the note 1641853 and kindly check if it helps...

Regards,

Rajasree R

[former_member182489]

If you have taken input credit, you need to capture the output Excise too.

i.e if it is a in house production you are giving free of cost , Cenvat need to be captured, Or if you are trading a material, which you haven credit , Cenvat need to be captured when you sell.

check in J1id - Input out determination.