RISHABH ARORA (Company Secretary in Practice ) (194 Points)
21 March 2014If manufacturer of alcohol, manufactures such item in Delhi and Transfer the same to its branch office in Punjab.
Then Which State Govt. will Levy the Excise duty and Why?
karan jit singh
(Consultant)
(1299 Points)
Replied 21 March 2014
RISHABH ARORA
(Company Secretary in Practice )
(194 Points)
Replied 22 March 2014
Thanks So You say that the Excise Duty will be collected by Delhi Govt. in Punjab.
JMS
(DY.MANAGER -COMMERCIAL)
(110 Points)
Replied 08 May 2014
Excise duty is levied and collected at the place where invoice is raised. In your case, you need to raise invoice at Delhi and transfer to Punjab. From Punjab, the goods would be further sold at the same rate as per invoice raised at Delhi. So, you need to pay Excise duty in Delhi and on invoice Punjab branch is allowed to avail Cenvat to further duty payment at the time of selling from that place. Here, sales tax is exempted at Delhi and the same would be attracted at Punjab. Please note that Excise duty is not considered as state-wise since it is Central Govt. account.
Regards,
JMS
R P Ananthakumar
(Sr. Officer - Central Excise/Cash)
(514 Points)
Replied 19 May 2014
Dear Mr. Arora,
Excise duty levied on removal of goods from the factory of manufacture. So you have pay the duty at Delhi.
In this case you need not pay tax(CST) because it is branch transfter and not for sale.
Your branch is also registered with excise as dealer then you can take credit at branch then pass the duty to your customer. you can raise tax invoice only If your branch is not register with excise and no difference in price between dDelhi and Punjap. you need not to pay duty at Punjab.
Regards
RP Ananathakumar
CAclubindia
