Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Inter unit transfer

Ram kr. (Buisness) (883 Points)

04 November 2013

Dear Experts,

We are registered manufacturer in central excise. We are produced different type of product in our one plant and another plant. We want to transfer some product to another plant. What will be the excise formalaty in this regard, secondly can we take cenvat credit on this product in another plant.

Thanks

Reply
Follow
Share

3 Replies

kumar hattanna (Officer - Excise) (525 Points)
Replied 05 November 2013

Dear Sir, You need to transfer the stock paying duty equivalent the transaction value, it both units are register under center excise in different registration. You can cenvat credit once pay by one unit and take credit in different unit. Regards Kumar

Upgrade to CAclubindia Pro. Subscribe Now!

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 20 November 2013

Sir,

In my view that you can transferred the stock to another unit.

01. Caclauated 10% excess assessable value and after charged the Excise Duty 12.36 % on assessable value

i.e. value Rs. 100.00 in your factory premises and 10 % Inter Unit transaction value. so that value calculated Rs. 110.00 and after excise duty charged 12.36%.

and you passed the material on Stock Transfer Inoice and also taken Cenvat Credit said or various invoices.

Thanking you