Raw material sale in mfg unit
This query is : Resolved
10 May 2012
Sir, How can i show the raw material sale in ER-1 as a sale or Other, and what is the rate of the duty actually purchased for our production, but it send to other party in their requirement
01 January 2017
what is the procedure to register as CA
20 July 2025
1. Raw Material Sale in a Manufacturing Unit (ER-1 Reporting)
Where to show in ER-1?
Raw material sale should generally be shown under "Other Sales" or a separate section for intermediate/raw material sales, not under finished goods sale. This is because raw materials are not your final product but are being transferred or sold outside.
Duty Implication:
If you purchased raw material paying duty for your manufacturing, but you are selling the raw material as-is (without processing) to another party, then duty implications depend on whether this sale is considered as 'manufacture' or 'trading'.
Usually, if the raw material is sold without processing, it could be subject to duty at applicable rates. If you have duty paid on purchase, duty credit rules may apply.
The exact duty rate would depend on the classification of the raw material and applicable rates at that time.
Summary:
Show raw material sales under "Other Sales" in ER-1.
Duty rate applicable will be as per the classification of that raw material in the relevant tariff schedule.
2. Procedure to Register as a Chartered Accountant (CA)
To register as a CA in India, you must:
Clear the CA Exams: Complete the three levels of the CA course conducted by ICAI (Institute of Chartered Accountants of India) — CPT/Foundation, Intermediate, and Final.
Complete Articleship Training: Under a practicing CA for 3 years (practical training).
Register with ICAI:
After clearing exams and completing articleship, apply for membership registration with ICAI.
Get Membership Certificate: After verification and approval, ICAI issues the membership certificate, allowing you to practice as a CA.
You can find detailed procedure and forms on ICAI’s official website: https://www.icai.org
Where to show in ER-1?
Raw material sale should generally be shown under "Other Sales" or a separate section for intermediate/raw material sales, not under finished goods sale. This is because raw materials are not your final product but are being transferred or sold outside.
Duty Implication:
If you purchased raw material paying duty for your manufacturing, but you are selling the raw material as-is (without processing) to another party, then duty implications depend on whether this sale is considered as 'manufacture' or 'trading'.
Usually, if the raw material is sold without processing, it could be subject to duty at applicable rates. If you have duty paid on purchase, duty credit rules may apply.
The exact duty rate would depend on the classification of the raw material and applicable rates at that time.
Summary:
Show raw material sales under "Other Sales" in ER-1.
Duty rate applicable will be as per the classification of that raw material in the relevant tariff schedule.
2. Procedure to Register as a Chartered Accountant (CA)
To register as a CA in India, you must:
Clear the CA Exams: Complete the three levels of the CA course conducted by ICAI (Institute of Chartered Accountants of India) — CPT/Foundation, Intermediate, and Final.
Complete Articleship Training: Under a practicing CA for 3 years (practical training).
Register with ICAI:
After clearing exams and completing articleship, apply for membership registration with ICAI.
Get Membership Certificate: After verification and approval, ICAI issues the membership certificate, allowing you to practice as a CA.
You can find detailed procedure and forms on ICAI’s official website: https://www.icai.org
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