Consumption tax (Consumption tax/Excise DutySpecial Goods and Services tax is a general term for a variety of taxes levied on the circulation of consumer goods. It is the most common turnover tax along with value-added tax. When processing goods on commission, the consumption tax levy is more special, because different processing methods of consumption tax payment time is different. Here is to do a detailed understanding with you.

Where the taxable consumer goods processed by the commission are directly used for sale after being recovered, the consumption tax shall be withheld and paid by the party receiving the commissioned processing. And the calculated price is the final selling price of the trustee. In this case,BExcise tax withheld and paid by enterprises,AEnterprises will directly bear the consumption tax into the cost of goods.

For example:AEnterprise entrustmentBThe actual cost of the materials issued by the enterprises (all general taxpayers) for processing tobacco is4000Yuan, processing fee800Yuan (excluding tax),BEnterprise similar, the same amount of tobacco sales revenue8000Yuan.AEnterprises will pull back tobacco after direct sales, sold7900Yuan, tobacco processing fees andBThe consumption tax paid by the enterprise has not been settled. Tobacco is subject to excise duty30%)At this time, the consumption tax is paid by the commissioned processing partyBThe enterprise shall withhold and remit. The amount of the excise tax paid=8000*30%=2400(Note, thoughAThe business was repossessed after direct sale only sold7900However, when calculating taxes, we still useBThe external selling price of the enterprise shall prevail. becauseBEnterprise external tobacco price is8000, so according to8000To calculate sales expenses)

If the commissioned processing taxable consumer goods are recovered and used for continuous production of taxable consumer goods, the entrusted party shall first withhold and pay the consumption tax. Then, when the commissioned party takes back the processed products and processes them into the final taxable consumer goods for sale, the consumption tax payable on the final taxable consumer goods shall be offset against the consumption tax withheld and paid by the entrusted party before. In this case,BExcise tax withheld and paid by enterprises,AInstead of accounting for the cost of goods, companies are required to offset the tax they withhold against the final consumption tax.

For example:AEnterprise entrustmentBThe actual cost of the materials issued by the enterprises (all general taxpayers) for processing tobacco is4000Yuan, processing fee800Yuan (excluding tax),BEnterprise similar, the same amount of tobacco sales revenue8000Yuan.AThe enterprise will take back the tobacco and put it into cigarette production. All the cigarettes produced are sold, and the sales revenue is15000Yuan, the consumption tax rate of such cigarettes is40%.

AThe total excise tax payable by the company=15000*40%=6000Yuan.

Among themBCompany isAExcise tax withheld and paid by the company=8000*30%=2400yuan

finallyAThe taxes that companies actually pay when they sell cigarettes=6000-2400=3600Yuan.

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