we have a carpet manufacturing unit in Meerut U.P. & all our material produced is being exported via JNPT port Mumabi.Since Meerut is too far off from Mumabai the transportation charges against movement of containers from Meerut to Mumbai port is very high.Based on the analysis done we came to know that the transportation charges & packing charges can be considerably reduced if we transfer semi finished goods to our branch in Vapi Gujarat & thereafter finally finish,pack & dispatch it from Vapi to Mumbai port. So I request you to kindly clear my following queries inorder to proceed further in this case :- Types of registrations required for branch office ? Form required for transfer of goods ? Various excise & Sales Tax documents required to be prepared ? How the accounting of branch will be done?
There is no need to transfer semi-finish goods to Vapi & re-pack. You can directly transfer packed finished goods to Vapi branch office/warehouse and from Vapi to Export to JNPT. This sale will be called as a Stock Tranfer to goods on payment of duty. The selling price should be a transaction value i.e. @ nearest rate.
Now the proces is, You need to apply for registration to Excise for Trading warehouse License (Depo sale) also to Sales tax.
At Vapi warehouse, you need to maintain RG-23 D register for receipt and sales activity and a quarterly return needs to submitted to Excise.
06 April 2012
Thank U Sir for providing such a valuable information.Since we want to save on packing material also which is cheap in Vapi in comparison to Meerut. Can we perform final packing operations in Vapi & further export.Does this fall under stock transfer category ? Please give your opinion on this also.
Once you have taken Trading warehouse License, You can very well do the final Packing of the material in Vapi and further Export/ local sale.
Please note, Record keeping is must. Excise Invoice will be raised under Rule 11, wherein receipting details will be shown in the Invoice and at the Top your sale value will appear.
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