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    Indirect Taxes and Profit Margins On MRP

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    rajibranjan7338
    This document outlines the various costs that are included in determining the maximum retail price (MRP) of a product, including taxes. It notes that the MRP is calculated as the total of manufacturing costs, marketing and advertising costs, supply chain and logistics costs, taxes, and profits for retailers that can range from 10-50% of all mentioned costs. It then provides details on the various tax rates applied to different cost elements like raw materials, equipment, power, transportation, customs and duties. Profits for manufacturers, dealers and retailers that are subject to income tax are also included.

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    Indirect Taxes and Profit Margins On MRP

    Uploaded by

    rajibranjan7338
    9 views2 pages
    This document outlines the various costs that are included in determining the maximum retail price (MRP) of a product, including taxes. It notes that the MRP is calculated as the total of manufacturing costs, marketing and advertising costs, supply chain and logistics costs, taxes, and profits for retailers that can range from 10-50% of all mentioned costs. It then provides details on the various tax rates applied to different cost elements like raw materials, equipment, power, transportation, customs and duties. Profits for manufacturers, dealers and retailers that are subject to income tax are also included.

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    Indirect taxation and how it affects the retail prices

    Original Title

    Indirect Taxes and Profit Margins on Mrp

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    This document outlines the various costs that are included in determining the maximum retail price (MRP) of a product, including taxes. It notes that the MRP is calculated as the total of manufacturing costs, marketing and advertising costs, supply chain and logistics costs, taxes, and profits for retailers that can range from 10-50% of all mentioned costs. It then provides details on the various tax rates applied to different cost elements like raw materials, equipment, power, transportation, customs and duties. Profits for manufacturers, dealers and retailers that are subject to income tax are also included.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    9 views2 pages

    Indirect Taxes and Profit Margins On MRP

    Uploaded by

    rajibranjan7338
    This document outlines the various costs that are included in determining the maximum retail price (MRP) of a product, including taxes. It notes that the MRP is calculated as the total of manufacturing costs, marketing and advertising costs, supply chain and logistics costs, taxes, and profits for retailers that can range from 10-50% of all mentioned costs. It then provides details on the various tax rates applied to different cost elements like raw materials, equipment, power, transportation, customs and duties. Profits for manufacturers, dealers and retailers that are subject to income tax are also included.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    of 2

    INDIRECT TAXES NAD PROFIT MARGINS ON MRP

    MRP= Total Manufacturing cost + marketing &advertising cost+ supply


    chain & logistic cost+ Taxes+profit for retailer+10-50 % (all mentioned cost )
    But it depend on the segment.
    Manufacturing cost = [Cost of Raw material (Taxed)+Cost of equipments
    (Taxed)+ Power ( Taxed) + Manpower Cost (Taxed )+ Consultancy (Taxed) +
    Before Production Transportation (Taxed)]
    Marketing and advertising cost = 7 to 10 % of total budget ( Upto 14.5 %
    Service tax on outsourced marketing and advertising, accepted as an input
    cost to company)
    Shipping cost:- (Packing & Forwaring = 3 % , Freight = 3% ( 14.5% Service tax
    on 30% of transportation charges if transported through Railway or
    Transporting agency) )
    Customs & Duties :- At Manufacturing Location =Import Duty (Taxed) +
    Excise Duty Including Cess (12.36 %) + Tariffs + Export duty (taxed)
    At Dealers location:- Central Sales tax (If there is an interstate sale (14.5% on
    basic cost+ED+ P&F) + Assam Govt. Entry Tax (2% of total value including
    transportation)
    At Retailers location :- VAT (14 % for Assam) Risk expenditure :- Transit
    insurance (Taxed) + Warrantee & Guarantee Cost (Taxed) + Quality Assurance
    cost ( Outsourced activities come under service tax @ 14.5% ) + Minimum
    Safety Stock cost
    Overhead Cost:- Exchange rates + travel expenses (taxed),

    Profits- Manufacturers profit (Approx 3%)+ Dealers margin (Approx 5 %


    Average) + Retailers margin (Approx 10 % average) - All come under income
    tax

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