MRP assessment – Board invites data

By Vijay Kumar

MRP based assessment is to be extended to toothbrush, parts, components and assemblies for automobiles and plant growth regulators with effect from 1^st May, 2006. The government is required prescribe abatement from the retail sale price to arrive at the assessable value for levy of excise duty. For this purpose they have an Advisory Committee. And the advisory Committee perhaps requires some data to arrive at the quantum of abatement. And the Board is in the process of collecting this information. TRU has requested Industry Associations to furnish data from their members to enable the Committee to take a view. The information required is

(i) Ex-factory price of the goods i.e. assessable value;

(ii) Excise duty paid;

(iii) Sales tax and other taxes paid;

(iv) Wholesale price inclusive of all taxes;

(v) Retail price (MRP or printed price);

(vi) Trade practices and sale pattern such as sole distributor, wholesale distributor, retailer;

(vii) Details of trade discounts. If it is based on written agreement, copy of the agreement may be obtained and forwarded. Details may be verified with the actual data;

(viii) Information may be obtained for different segments of the industry (small, medium and large) and based on recent data; and

(ix) Any other data relevant for the purpose of arriving at the abatement.

The information is asked from the associations by TRU’s letter dated 21^st April 2006. The associations are asked to compile the information from their members and submit to the Board by 28^th April, 2006. Based on this the Committee is to recommend the abatement and government will then notify the rates. 29^th and 30^th are holidays for the government and the abatement is to come into force from 1^st May. Are they serious about the data from the associations or have they already taken a decision?