Hello Team,
I have a querry regarding the sale of Raw Materials.
If I want to sell the raw material that is left over with us.
Can we sell the raw materials that was procured for home use.
If yes what is the procedure for that and what about the duties.
Thanks & Regards
Rishikesh
Dear Sir,
Raw material can be sold which was left over with you. There is no any restriction for resale. But you will have to pay the duty equal to the CENVAT credit availed on the raw material which you want to sale, either by reversing it in your CENVAT credit or by PLA.
Transaction value should not be considered for calculation of Duty.
Yes,I agree the with Mr. kiran kumar
| Originally posted by :A. Kiran Kumar | ||
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Hi, Thanks for the valuable answer. One more thing I want to know if you could be kind enough to answer it. When I am selling the RAW MATERIAL do l have to transfer the material from RAW MATERIAL store to FINISHED STOREto show to the excise authorities that the material I have sold is Finished Product?? And is it legal to sell the raw material?? Thanks & Regards Rishi
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Dear Sir,
No. It is not possible. The said raw material is always raw material for you, unless it is amount to any manufacture / process. Hence it can not be considered as your Finished Product. It has to be cleared as Raw material itself.
Dear Kiran,
Thanks again for the quick reply. I appreciate that.
My question is answered.
Thanks & Regards
Rishi
Can any one advise for sale of raw material for a mfg. Co. Recorded in RG-1 or Not with notification
| Originally posted by : Vijay Kumar | ||
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Can any one advise for sale of raw material for a mfg. Co. Recorded in RG-1 or Not with notification |
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RG-1 ( now DSA) is the register of "manufactured finished products" and it does not contain data for raw materials
for receipt and issue of raw materials, use RG23A part 1 and 2
Sale of Raw material is to be invoiced with excise duty and such debits should be catagorised in excise
return under cenvat availed and utilised heading subheading "credit utilised for removal of materials as such"
and in Rg23a Part II you should debit the excise duty.
you should invoice the material under the same tariff it was received.
I agree with Mr Sharma that sale of raw materials as such is to be recorded only in Rg23a Part 1 & II
CAclubindia
