Excise duty is charged on Which Amount?
I mean Excise duty is charged after adding profit.Do we have to charged excise on profit.
Suppose i bring a product X at 5000 rs and then sell it at 6000 rs without doing anything (for a profit of 1000 rs,due to difference in market price), in this case do i have to pay excise duty.If yes then how much? whether on 6000 or on 5000 rs.
or simply forward the excise burden to the buyer for the amount that i have paid while purchasing this product.
One of my friends is doing business in computer system, he has same query.Currently what he is doing is that he added word "system" to the purchased product and then charge excise duty.
1)do excise is charged on the profit?
2)on which amount the duty will be charged if i purchase the product at 5000 and sold it at 6000 with profit of 1000 without doing anything.
3)what about the excise duty in above case if i donot amount to manufacturer?