can any one clarify assessable value tobe considered in case of interstate inter unit stock transfer.
1) we are registered under Central excise & sales tax as a manufacturer having same manufacturing units in different states like Delhi, Uttarakhand, jarkhand.
2) we are planning to transfer some of inputs (Bought out finish and semi processed inputs) to other units in different states.
3) we are following 110 per cent of the cost of production under rule 8 of the new Valuation Rules,for payment of excise duty and same is shown in our ER1 returns.
4) we are not charging cst as we can get the Form F for the interstate stock transfer.
My query is A) whether the following calculation for invoice and for sales tax assessable value is correct ? B) what is the value tobe shown in vat returns ? amount shown in e or f
a) basic price 1000.00 b) add: 10% (rule 8) 100.00 ________ c) total 1100.00
d) Excise duty 12.36% 136.00 ________ e) total Inv value( a+d) 1136.00 _________ f) Ass Value for ST Purpose (a+b+d) 1236.00 --------- thanks in advance ramkumsr ms
21 May 2013
But in the above case addition 10% of basic price is not a value addiion and no profit is involved in the transaction and is considered for excise duty purpose only. these interunit transactions are reflecting in same balance sheet under head inter unit transfers and not considered as sales.
basic price + excise duty is charged (debited ) to transferee account (ie cost of inputs+ excise duty reversed)
transferee account dr 1136 cost of raw material cr 1000 excise duty reversed cr 136
for the said reason invoice value is 1136.00 only
can u clarify this is correct, if it is not correct how to show additional 10% in books of account.
CAclubindia
