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RAW MATERIAL SALE

Rishikesh (CONSULTANT) (35 Points)

25 June 2009

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

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8 Replies

A. Kiran Kumar (Manager - Indirext Taxation) (156 Points)
Replied 27 June 2009

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.

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soni chauhan (Service) (670 Points)
Replied 27 June 2009

Yes,I agree the with Mr. kiran kumar

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Rishikesh (CONSULTANT) (35 Points)
Replied 27 June 2009

Originally posted by :A. Kiran Kumar

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

A. Kiran Kumar (Manager - Indirext Taxation) (156 Points)
Replied 27 June 2009

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.

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