Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: form 3cd :: VAT Audit :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: due date for vat payment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: cpt :: ACCOUNTING STANDARD :: TDS
Customs and Excise »
 Central Board of Excise and Customs to soon notify new procedural framework
 CBEC set to be Central Board of Indirect Taxes and Customs
 Govt to give customs, excise duty benefits to boost solar rooftop sector
 Clarification regarding posting of Central Excise officer in Cigarette units-reg.
 Ensure transparency in excise department working: Bizmen to government
 It is time to review the customs duty on essential food imports
 Migration to GST of existing Central Excise / Service Tax Assessees
 Rate of exchange of conversion of the foreign currency with effect from 3rd February, 2017
 Budgetary Changes In Customs
 Customs and excise officials upset with GST administration deal with states
 Higher petro excise props up govt tax kitty

New excise norms to hit car companies hard
August, 14th 2013

The government has 'informally announced' new excise norms that mandate that companies must pay duty on 'whatever is higher' between manufacturing cost or selling price, say top sources in the automobile industry. The new directive could have a significant impact on passenger vehicle manufacturers that have been discounting heavily to push sales in the ongoing slowdown.

"This directive is based on the recent order of the Supreme Court in the Fiat case and as such, it is already the law of the land," said a top official in the Central Board of Excise and Customs ( CBEC). "Once the Supreme Court comes out with an application, it applies immediately to everyone except in cases where there are elements of suppression, in which instance it will apply from the past. There is no need for a notification because the Supreme Court directive makes it the law," the official said.

The new norms are likely to be introduced with prospective effect and will impact automobile companies that have been offering huge discounts in an effort to move inventory during this downturn. "We have been informally informed by the finance ministry on this issue," said the president of a mass market passenger vehicle manufacturer. The new norms mandate that if the manufacturer is selling below cost, then it needs to pay excise duty on the cost of production plus a notional profit. Excise duty earlier was payable on the transaction value of a product.

Automobile industry apex body SIAM has offered the government information regarding circumstances where a company is forced to sell below cost due to a number of factors including competition from under-priced imports.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions