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How to calculate Excise duty in manufacturing secoter.
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Answer / devender kumar
I Can explain this answer by an examples.
An export company purchased clothes for rs. 200000 from
pearl global. and after manufacturing sales to the fortune
export for rs 300000. If excise duty is paid @ 12%.
Ans. accounting enteries will be:
Purchase ac Dr 200000
excise duty Input Dr. 24000
edu. cess @ 2% on excise duty dr. 480
She cess @ 1% on excise duty dr. 240
To Pearl global cr 224720
Fortune export Dr 337080
To sales 300000
To excise duty Output 36000
To edu. cess @ 2% on excise duty 720
To she cess @ 1% on excise duty 360
Excise duty Output dr 37080
To excise duty Input cr 24720
To excise duty payable cr 12360
excise duty payble 12360
To bank Ac 12360
| Is This Answer Correct ? | 134 Yes | 9 No |
Answer / ameet narayankhedkar
Here is an example of calculation of excise duty. If you
understand...well n good..
Assuming the product X has the following value and
chargeable to following duties:-
(i)
Value of goods under section 14 of Customs Act, 1962 =
Rs.100/-
(ii)
Basic Customs Duty = 35%
(iii)
Surcharge = 10%
(iv)
Additional Duty = 16%
(v)
Special Additional Duty = 4%
The calculation of duty leviable on the goods produced or
manufactured by EOUs/EPZ/STP/EHTP units and cleared into DTA
as per specified paragraphs of the Exim Policy would be as
follows:-
Method of calculation of duty:
On assessable value of Rs.100/-, the goods would be leviable
to,-
Basic Customs Duty @ 35%
= Rs.35.0/-
Surcharge @ 10%
= Rs.3.5/-
Total Basic duty + Surcharge
= Rs.35.0 + Rs.3.5/-
= Rs.38.5/-
Value for the purpose of calculation of Additional Duty
under section 3 of CTA, 1975
= Rs.100/- + Rs.38.5/-
= Rs.138.5/-
Additional Duty of Customs
= 16% of Rs.138.5/-
= Rs.22.160/-
Value for the purpose of calculation of
Special Additional Duty under Section 3A
of CTA, 1975
= Rs.100/- + Rs.38.5/- + Rs.22.160/-
= Rs.160.660/-
Special Additional Duty
= 4% of 160.660/-
= Rs.6.426/-
Total duty payable
= Rs.35.0 + 3.5 + 22.160 + 6.426/-
= Rs.67.086/-
Duty required to be paid = 50% of 67.086
= Rs.33.543/-
(Read with notification No.2/95-CE, dated 4-1-1995 as
amended)
The amount of duty so calculated above to be payable by the
EOUs/EPZ/STP/EHTP units would be subject to the condition
that such duty shall not be less than the duty of excise
leviable on the like goods produced or manufactured by units
in DTA.
| Is This Answer Correct ? | 9 Yes | 14 No |
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