02 July 2015
Respected Experts. My Doubt. I manufacture a Wooden House. My house will consist of both immovable items and movable items like furnitures. Movable items are Excisable goods and hence Excise is to be paid. On immovable goods, my doubt is as under : 1. If i manufacutre ceiling, flooring, sidewalls etc. in my factory seperately and install the same in my site where it becomes an immovable item, should i pay excise duty to in my factory? 2. Am manufacturing the wooden houses only for my project. Should i go by normal valuation or should i assume i manufacture these goods for captive consumption?
03 July 2015
The cenvat credit will not be available on any goods used for construction or execution of works contract of a building or a civil structure or a past thereof; or (b) laying of foundation or making of structures for support of capital goods.
My clarification is not in relation to cenvat credit. I just want to clarify how to value the goods i manufacture? should i adopt captive consumption principles since i use the wooden houses i manufacture in my factory at my project site.
03 July 2015
For the purpose of valuation of goods the value of the goods will be inputs, processing charges and profit will be inclue in the transaction value. The cost of house is your capital of the business.
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