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Delhi Excise Blues

After a lot of queries and even more asking around, we try and crumble the Delhi Excise code and how it works.
Below is the MRP calculation in Excel sheet and explanation of how it works:

Excise Calculation

Our Local 'WINE' Shop!!If you promise to give us good wine to taste & leave us your e-mail we will even send you the formula for calculating this in Excel sheet. So, here it goes….with the new policy the Excise fees is applicable and calculated as a percentage of declared MRP. This is 30% for a wine having a MRP of Rs 2000. However, for a wine having a higher MRP (more than Rs 2000) for example Rs 3000, the excise would be Rs 600 ( Till Rs 2000, 30% = .30*2000 = Rs 600) and Rs 200 ( 20% on the higher amount – Rs 3000 – Rs 2000= Rs 1000 @ 20% = Rs 200). Total Excise would be Rs 800.
In addition to this there would be161 % import duty including 150% duty + cess etc. With this new policy, we can safely assume that the retail price for a 5 Euro wine will be Rs 3000- 3200 in New Delhi.

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Comments (2)

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  1. Dirk says:

    Hey Guys, nice work! Will surely help the one or other to understand this very ‘interesting’ taxation structure… Keep it up!

  2. Satish Nair says:

    That’s nice of you to have aptly put down all our Excise woes. Guess its more than the 161%, how can one over look the MONSTROUS L1 license fee which was hiked to 5 lacks in 2009 and clubbed with other spirits by the Ex department for wine and beer.

    On the one side the Govt. tries to add them to the Groceries list and on the other side club them with Whiskys, Vodka and the rest.

    If they only make the L 1 for wines and beer as easy to get as ones Pan-card and at a nominal fee of
    Rs. 1 lack in Delhi, I can bet The Excise department will earn much more revenue than by hiking it, as they have done.

    The doctors / wives too will be happy, as more guys will switch to wine & beer and stay away for hard drinks on week days at least.

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