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Mar 06, 2013
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Finmin panel to calm excise over-reach fears
The finance ministry will set up a committee in April to address concerns that revenue authorities might soon start demanding higher excise duty payments from companies which often resort to introductory (below-cost) pricing to capture markets. Several auto companies and mobile handset makers are jittery over a recent Supreme Court verdict which rejected the transaction value quoted by Fiat India as the base for excise tax levy.Upholding the view of tax authorities, the court held that Fiat sold the car below production cost on extra-commercial considerations of gaining greater market share and building a brand value and therefore, the discounted price was unacceptable as the transaction value. The tax department had demanded excise duty from Fiat on the cost of production plus reasonable profits.
Source -
http://www.financialexpress.com
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