plant to plant Finished Goods Transfer

hi,  In both unit the same materials are finished goods,   whether Entry is  to be made in rg-1 ( production) column  or raw materials stock register.  If I sale w/o any opperation to other parties ( as it is) what will be the duty debit  ,the same duty . or more ?

Is this permissible to sale any othe party( xyz co. ltd) as it is w/o  doing any process bringing the finished goods from one unit  to another unit. We get order to our unit-ii factory  from xyz Co. Ltd, materials prduced in our unit - I Factory , after transfer the  materials in our unit-II factory .

Here telling merely delivery challan is sufficient to transfer the materials (reffering the value). I am thinking different , Excise Inv. is must to transfer the materials as we took the credit. . Then why I will make a separate D.C. What is necessecity of D.C in this respect.

Total procedure not clear to me yet.

Thnx

Amitabha Mukherjee

09985594940.

amit_rohan2004 @ yahoo.co.in

When some one transfer raw material to his other plant which have a separate registration he discharges the duty liability and the receiver unit take CENVAT credit of the goods so transferred if they uses such material in or in relation to manufacture excisable finished goods. Again when the receiver unit manufactures some excisable goods he has to discharge duty liability at the time of removal of finished goods so manufactured out of their factory. In this transaction sales tax would not be required to be paid as sales tax is levied on sale and not on stock transfer.

Now in case where finished goods are transferred to other plant then too the duty liability would be discharged by the sender unit. Again if the receiver unit sale those material to unrelated buyer on behalf of the sender unit the total transaction price would be considered as Assessable Value and differential duty liability arises if any the same need to discharged by the original sender unit.

I also like to say that i am fully agree with Ms.Swati Madam

Hi Friends

what are the accounting entries to be passed both sides on plant to plant stock transfer

Thanks

Srinivas