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Query on Excise

JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)

16 November 2010

If there is interplant fixed assets transfer ( both sister units under same management) from one state to another, what are the procedures to be complied wrt Excise Act / Rules, CST , VAT etc.

Kindly advise.

J Banerjee

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5 Replies

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 17 November 2010

Please clarify, fixed asset means what ? machinery, tools ...etc

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JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)
Replied 17 November 2010

Thanks.

Mostly plants & machineries firmly embeeded ( to be dismantled) & a few equipments.

Regards,

J Banerjee

17.11.10

R P Ananthakumar (Sr. Officer - Central Excise/Cash) (514 Points)
Replied 19 November 2010

As per excise

Option1 - You will transfter all the equipements and machinerys with proper excise invoice with payment of duty(you can adjust if any depreciation). And the same can be taken credit at that unit.

Option2- As like merger, you will transfer the all goods and cenvat balance if any. to another unit with proper intimation to your comm. of cex. Based on that you can transfer all the goods without payment of duty.

As per sales tax

This is like stock transfer. You can mention that invoice as stock transfer and not for sale. This is enough for sales tax . you can raise zero tax

1 Like

Raj Kumar Chattopadhyay (Sr.Functional Consultant) (21 Points)
Replied 25 January 2012

Thanks Mr.Anantkumar for your valuable advise.

I have one query further to this discussion. The company has already used the fixed asset for few years and taken 100% cenvat credit. In this case, my query is whether excise invoice is required while transferring the asset to other plant of the same organization; or transfer through a Non Returnable challan is sufficient. Kindly advise in this regard.

yagnesh (Accountant) (26 Points)
Replied 25 January 2012

In your case, According to me, if you transfer you asset through challan then you will not aligible for depriciation on same asset in your sister concern firm as per income tax act. so it is batter to provide invoice (duty paid or nill duty against permission of Commissioner of Central Excise)