Professional Documents
Culture Documents
Dated: 21/11/2014
effective overhead charges of BIS, i.e. Rs 29,000/-. Accordingly an exercise was initiated by
CMDII(L) to review the Marking Fee of all products where the Marking Fee is not as per the
following Methodology:
Ideal MMF = Overhead charges + Cost of 2 MS + Testing charges of 4 samples (2 FS & 2
MS)
5. While applying the policy it was observed that in some cases the 20% concession would
entail the manufacturer to a MMF which would be less than Rs.29,000/-. Accordingly the
matter has been reviewed once again by Competent Authority and the following is proposed.
Proposal
6. Where the Marking Fee is Rs.29,000/-, BIS is actually not charging the licensee for the
cost of market sample, cost of testing charges of the samples to be tested. Accordingly, the
revised proposal is being based in line with the decision of Marking Fee Committee held on
12/12/2011.
7. The effective overhead charges as on date is Rs.29,000/- which is being taken into account
for calculation of Marking Fee for all products. Overhead cost for Large scale units be taken
as 1.25 times the actual overhead charges so that on concession of 20% the overhead charges
does not come below Rs.29,000/-. As such the Overhead charges for Large scale units comes
out to be Rs.36,250/- rounded up to the next thousand to Rs.37,000/- as per the marking fee
fixation policy decided in 2010.
8. The calculation of Marking Fee shall therefore be as follows:
i.
Marking Fee for Large Scale= Rs.37,000 + Cost of 2 Market Sample + Testing
charges of 4 samples (2 FS & 2 MS)
ii.
Marking Fee for MSME = 80% of Marking Fee for Large Scale (after giving 20%
concession on large scale marking fee).
(Note: Marking Fee per Unit shall be capped at 0.2% of the sale value/ex-factory price of the
product).
9. Revised MF calculation format has been approved for revision of Marking Fee as well as
for Marking Fee proposal of new products which is at Annex-A.
10. Since revision of Marking Fee for products being revised, the concession to MSME unites
may be aligned with the revision of the products in three phases:
i. Phase-I: All new proposals shall be made considering 20% concession in MF with
immediate effect.
ii. Phase-II: The present MF revision exercise (for products where the MMF for LS &
MSME units are Rs34,000/Rs.29,000 respectively) shall be done by taking into
consideration the 20% concession to MSME units. This exercise of identification of
all such products and refixing their MF shall be completed by 31 Dec 2014. The
iii.
revised MF may be made effective from 01/04/2015 in order to enable BOs to make
calculations for all licences for calculation and recovery of dues.
Phase-III: The remaining products shall be reviewed for refixing of MF based on the
new policy and concession to MSME units shall be enhanced to 20%. The revised MF
may be made effective from 01/07/2015 in order to enable BOs to make calculations
for all licences for calculation and recovery of dues.
11. Submitted for kind consideration and further orders on the issue please.
sd/- 21.11.2014
( S Basu )
Sc-D
Annex-A
PROPOSAL FOR MARKING FEE (For All India First case, as w
1
Sl. No.
IS No.
No. of
Existing
Average
Annual
production
capacity of
Description
of the
Licences Note
Product
2
firm Note 2
(in Rs)
10
11
12
13
1
2
3
4
5
6
7
8
9
Note 1: Col.11 - cost of inspection/supervision, administration cost for LS units to be taken as Rs.37000/Note 2: Col 4 is for Revision cases and col 5 is for All India first cases
Note 3: Marking Fee Concession to MSME shall be taken as 20%
Note 4: Marking Fee per unit of production shall be capped at 0.2% for all cases
15
Proposed
Existing
MARKING
Marking Fee Fee per Unit
per Unit of
of
Production, production,
for LS
for LS
(in Rs)
16
17
Proposed
Marking fee
% Increase
as % of Sale
(col 15-col
value/ex14)/col
factory price
14)x100}
(to be capped
at 0.2%)Note 4
18
Existing
Marking
Fee, LS (in
Rs)
19
20
Existing
Proposed
Marking
Marking FEE
Fee, MSME
, LS (in Rs)
(in Rs)
21
22
23
24
Proposed
% Increase
Marking
% Increase
in minimum Remarks (if
Fee, MSME in minimum
marking
any)
Note 3
marking (LS)
(MSME)
(in Rs)
25
Proposing
BO