Goods produced in factory and stored outside in warehouse

In this case, Goods are allowed to be removed from factory and allowed to be stored in warehouse.

Excise duty is applicable on the date of removal of goods from warehouse and the person liable to pay duty is the person who stores goods in warehouse.

 

Change in Tax Rate between Date of Manufacture and Date of Removal

In this case, tax rate as on  date of removal from factory is applicable

 

Goods were taxable at 0% later become taxable at 12.5%

In this case also, tax rate as on  date of removal from factory is applicable

 

Goods were taxable at 12.50% but were exempted due to a notification,

later exemption notification withdrawn and they became taxable

In this case also, tax rate as on date of removal from factory is applicable

 

Goods were Non Excisable (not mentioned in CETA) later became taxable on date of removal

In this case, no duty as goods were not excisable at the time of manufacture.

 

Rate at the time of

Manufacture

Rate at the time of

Removal of Goods

From Factory

Rate Applicable

10%

12.5%

12.5%

15%

12.5%

12.5%

0%

12.5%

12.5%

Exempted

12.5%

12.5%

Non Excisable

12.5%

No Duty

Non Excisable

12.5%

12.5%

+

Additional Duty 4%

12.5%

(Additional  Duty cannot be imposed)

12.5%

13.5%

+

Additional Duty 4%

13.5%

(Additional  Duty cannot be imposed)

 

  1. Indirect Tax
  2. Excise
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.