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plant to plant Finished Goods Transfer

guna sekar (software consultant) (42 Points)

26 November 2009

we have two plants and they having defferent Excise Registrations

now that two palnts are production plants in the same state,we are tranfering finished good from plant to palnt and now how to excise duty effected both plants.

gunasekar.r

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17 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 26 November 2009

ANY WAY YOU ARE PAYING EXCISE DUTY THEN ONLY REMOVE YOUR GOODS FROM THE PLANT AND FOR STOCK TRANSFER JUST ATTACH DC and state excise Duty Paid vide give Refrence and move your goods by using the Local sales Tax Form applicable to the state

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guna sekar (software consultant) (42 Points)
Replied 26 November 2009

Originally posted by :sivaram
"	ANY WAY YOU ARE PAYING EXCISE DUTY THEN ONLY REMOVE YOUR GOODS FROM THE PLANT AND FOR STOCK TRANSFER JUST ATTACH DC and state excise Duty Paid vide give Refrence and move your goods by using the Local sales Tax Form applicable to the state	"

now what about receiving plant about excise duty

gunasekar.r

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 26 November 2009

goods are removed from the sending plant by paying excise duty why one again by receiving plant

guna sekar (software consultant) (42 Points)
Replied 26 November 2009

Originally posted by :sivaram
"	goods are removed from the sending plant by paying excise duty why one again by receiving plant	"

because both are manfacturing plants with diferent registration

gunasekar.r

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 26 November 2009

thats fine you are asking how to move goods by stock transfer from one plant to another.Suppose Plant A (Sending Plant) wants to transfer goods to Plant b(Receiving Plant) the sending plant will discharge excise duty and then only will make a stock transfer .Plant B will take the same as inputs and any process is done by them and again retransfred then once again excise duty has to be paid and material has to be stock transfered in the method as stated

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sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 26 November 2009

The DC will have its Transfer Price Value

guna sekar (software consultant) (42 Points)
Replied 26 November 2009

Originally posted by :sivaram
"	thats fine you are asking how to move goods by stock transfer from one plant to another.Suppose Plant A (Sending Plant) wants to transfer goods to Plant b(Receiving Plant) the sending plant will discharge excise duty and then only will make a stock transfer .Plant B will take the same as inputs and any process is done by them and again retransfred then once again excise duty has to be paid and material has to be stock transfered in the method as stated	"

if it is Rawmaterial, we can take like input ,but it is Finished good-how can we take as input

gunasekar.r

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 26 November 2009

input here i mean just make an inward receipt in that plant (Receiving Plant) since you have to ultimately reconcile the material movements at both ends

guna sekar (software consultant) (42 Points)
Replied 26 November 2009

Originally posted by :sivaram
"	input here i mean just make an inward receipt in that plant (Receiving Plant) since you have to ultimately reconcile the material movements at both ends	"

if i sell the material from recieving plant then what about duty

gunasekar.r

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 27 November 2009

From the Factory You will not be selling the goods except in case of OEM .any way since excise duty is already paid you need not pay excise duty once again on Finished Goods

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Ravi Mathur (Service) (130 Points)
Replied 27 November 2009

bla bla bla.... nothing will harm u.. first tell me first sending factory is still running or u wants to close it. or it is running & u want to do it in regular process. both condition are totally different in C.Ex. manner.

Swati (CA) (76 Points)
Replied 29 November 2009

Hi Guna,

The finished goods can be transferred from Plant 1 to Plant 2 by paying excise duty on 110% of teh cost of production of the goods or the transaction value of the identical goods if available.

If u want to sell the goods as such from Plant 2 and these goods qualify as inputs for Plant 2, you can clear the goods under an excise invoice of Plant 2 and pass on the cenvat credit.

If the finished goods are not inputs for Plant 2, Plant 2 needs to get registered as a First Stage Dealer to pass on the credit of the excise duty paid on the goods by Plant 1

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HS Negi (Senior Executive- F&A) (590 Points)
Replied 01 December 2009

Plant to plant transfer is called stock transfer. So you have to pay the excise duty on the material cost (Direct+indirect expe.)+10% value addition. You should also preprare the cost sheet prescribed in form CAS4. This is because it will be helpful to justify that you have paid the correct duty. This will also help you in CAG & departmental audit.

Thanks

Harendra SIngh Negi