Excise duty in branch transfer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2012 Dear sir,
We are dealing T shirts,and we are going to open a branch at Goa.We are transfering the material from our Bhiwandi godown.Please let me know whether we have to charge Excise duty in this transaction.

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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07 November 2012 Yes, Excise duty is payable on removal goods to depot. As per Rule 7 of valuation rules value shall be normal transaction value of such goods sold from such depot at or about the same time and, where such goods are not sold at or about the same time, at the time nearest to the time of removal of goods under assessment.( i,e price prevailing at depot)

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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2012 Then what about Sales tax, whther we have to charge CST or under F form.

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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07 November 2012 Need not charge CST , obtain Form F on monthly basis - there is no sale at all.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2012 Also please explain if we billed from our branch to our customers, shall we have to charge Excise duty in the invoice.

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CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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08 November 2012 Need not charge again . You can issue tax invoice. However for taking cenvat credit by customer , depot should be registered as dealer and issue dealer invoices.(show the duty amount separately that was paid at the time of depot transfer ).

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