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Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2013 please define captive consumption & home consumption in simple words?With example.

Satyendra

Satyendra (Expert)
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18 March 2013 When an entity produced more than one products and one of final products also used as raw material for other product, then this consumption of first finished products is called captive consumption.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2013 Thanks
what is home consumption?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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18 March 2013 Captive Consumption means the consumption of goods manufactured within the same factory

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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18 March 2013 Home Consumption Means to used for manufacturing brought from somewhere say out of india.
but not manufactured in same factory.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2013 Ayush Sir do you mean to say that all raw material (including capital goods) brought to factory for utilising in manufacturing the final product(of manufacturer) whether such Raw material/capital goods are purchased from India/DTA or imported?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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18 March 2013 Normally Home Consumption Word Used for Custom Only.
Means Whenever You Import and clear it for home consumption.

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2013 Sir I was studying in excise that intermediate goods removed for home consumption are liable to excise duty.what does it mean then?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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18 March 2013 yes, suppose abc organisation manufacture final product is "X"...
use intermediate goods "Y" and Z" for production of "Z"..

if they sold "Y" directly instead of using it in manufacturing "X"....then its liable to excise duty....
if they sold it to any where in india....for home consumption then liable to excise duty.

here no involvement of Custom.
i said normally word home consumption used for custom...but you also find it in excise.

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