14 October 2011
Sir i m an accountant in a trading company who is going to start manufacture of some motor vehicle parts by introducing its new division for manufacturing we transfer the manufactured product from new division to trading unit by merely an entry of stock transfer and then the goods are sale to outsider by billing through trading unit. will this adjustment can save the excise liability if no at which point excise liability arises.
14 October 2011
In above case you are transferring manufactured goods from manufacturing division to trading unit and then from trading unit goods are finally sold to customer.
In that case you have to obtain Registration Number under excise as follow:
1. for manufacturing division as manufacturer.
2. for trading unit as manufacturer's depot.
And valuation of goods will be done under Rule 7 of Central Excise Valuation (DPEG) Rules, 2000 and accordingly you have to deposit excise duty at the time when goods will be removed from manufacturing division to trading unit.
CAclubindia
