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stock transfers-excise duty

guna sekar (software consultant) (42 Points)

07 November 2009

my company have two plants,this plants located in deferent states.

now one state have excise and another state have excise exemption,now we want to transfer stock -excise aplicable state to exemption state

what can do

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3 Replies

Vaibhav Agrawal (MD) (58 Points)
Replied 10 November 2009

It will depend on in which excise exemption state your 2nd unit is. Because deifferent state have different rules. Like one condition for J&K/North East and another for Uttarakhand/Himachal. However in my opinion, you have to charge excise duty on stock transfers from 1st unit, but your 2nd unit (excise exemption zone) can not take its CENVAT credit if it is in Uttarakhand.

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guna sekar (software consultant) (42 Points)
Replied 11 November 2009

Originally posted by :Vaibhav Agrawal
"	It will depend on in which excise exemption state your 2nd unit is. Because deifferent state have different rules. Like one condition for J&K/North East and another for Uttarakhand/Himachal. However in my opinion, you have to charge excise duty on stock transfers from 1st unit, but your 2nd unit (excise exemption zone) can not take its CENVAT credit if it is in Uttarakhand.	"

as per as ur answer

what is the right answer

plant 1

1. customer a/c Dr 1100

To excise pay a/c 100

To Sales a/c 1000

plant 2(exemtion state)

have i to add excise to material or not

for example :

inventory value 1000 or 1100(asper billing)

thank you