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Procedure for removal of goods

BIKASH AGARWAL (ASSISTANT CS) (89 Points)

29 October 2011

CAN ANY ONE TELL ME ABOUT THE PROCEDURE FOR TRANSFERRING RAW MATERIAL FROM ONE UNIT TO ANOTHER UNIT OF SAME COMPANY WITHIN SAME STATE INCASE OF EXCISE.

PLEASE ALSO SEND ME IF THERE IS ANY PROFORMA INVOICE.

EXAMPLE : OUR COMPANY IS TRANSFERRING 20 KG @ 200 PLASTIC GRANULES FROM HOWRAH UNIT (WEST BENGAL) TO ULUBERIA UNIT (WEST BENGAL). IS THERE ANY INVOICE FORMAT FOR THE ABOVE TRANSFER?

IS IT TREATED AS SALE IN THE UNIT WHICH TRANSFERED THE RAW MATERIAL.

WE ARE TRANSFERRING THE RAW MATERIAL AS SUCH WITHOUT CHARGING ANY PROFIT.

WAITING FOR THE REPLY

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5 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 29 October 2011

you can use the invoice for home consumption for removal of goods as such, input credit availed should be reversed and paid on the invoice so issued.

such clearances would not be part of "progressive total of clearances"

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BIKASH AGARWAL (ASSISTANT CS) (89 Points)
Replied 31 October 2011

THANK YOU SIR.

BUT THERE IS CONFUSION THAT THE TRANSFER SHOULD BE MADE IN TAX INVOICE OR IN ANY OTHER FORMAT. I MEAN THAT INVOICE ISSUED SHOULD BE TAX INVOICE OR ANY OTHER FORMAT IS THERE.

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 31 October 2011

No separate format. U can use that same tax invoice format (under central excise rule 11a) for clearance. Please mark a " CLEARED AS SUCH" in your invoice instead of "Regular Sales or Domestic Sales or etc".

Further you should reverse the duty at the time of cleareans, which is equal to Cenvat taken at time of inward for the material.

thanking you.....

BIKASH AGARWAL (ASSISTANT CS) (89 Points)
Replied 01 November 2011

THANKS SIR

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 01 November 2011

Originally posted by : BIKASH AGARWAL
	THANK YOU SIR. BUT THERE IS CONFUSION THAT THE TRANSFER SHOULD BE MADE IN TAX INVOICE OR IN ANY OTHER FORMAT. I MEAN THAT INVOICE ISSUED SHOULD BE TAX INVOICE OR ANY OTHER FORMAT IS THERE.