Dear Viewers,
I want to know how to handle the sales return in excise. For example I have sold 100 quanties by charging excise duty. Now the buyer returns part of the goods let us say 50 qty under rule 11 invoice.
1) How do I account this 50 qty. Should I take it to ER1, Daily Stock register or RG23 A part I.
2) Buyer has issued me rule 11 invoice,based on that can i avail CENVAT credit and if so where should I show the credit i.e. RG23 A part II and ER1. Then what about the quantity returned. Should I show in RG23 A part I which is maintained only for Raw Material (principal Inputs) but the returned goods belong to Finished good. How do I handle?
3) When I re-sell these 50 quantity, where should I show this. If I show in daily stock register, it would amount to double the quantity because when I have manufactured the finished good, I have already accounted it.
4) While re-selling the goods, i will charge excise duty and where should I disclose this duty.
Kindly clarify the above. Thank You very much
CAclubindia
