Captive consumption
This query is : Resolved
06 March 2015
Dear Experts,
Company "X" has its registered Unit of manufacture in location "Y",
Company X manufactures a dutiable product,
Company X not only sells the product to its customers but also transfers some of its Finished Products to its another manufacturing unit which uses it as Raw material for manufacture of another Dutiable product. The other unit is located 10kms away from Location "Y".
Will this movement of material from Location Y to other unit, leads to Captive Consumption.
(Both units are seperated)
Thanks in Advance.
Company "X" has its registered Unit of manufacture in location "Y",
Company X manufactures a dutiable product,
Company X not only sells the product to its customers but also transfers some of its Finished Products to its another manufacturing unit which uses it as Raw material for manufacture of another Dutiable product. The other unit is located 10kms away from Location "Y".
Will this movement of material from Location Y to other unit, leads to Captive Consumption.
(Both units are seperated)
Thanks in Advance.
06 March 2015
It will not be captive consumption.
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all excisable goods manufactured in a factory and used within the factory of production (hereinafter referred to as “inputs”) for the manufacture of final products, cleared in accordance with the provisions contained in any of the notifications
mentioned in the Schedule to this notification, from the whole of the duty of excise leviable thereon which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all excisable goods manufactured in a factory and used within the factory of production (hereinafter referred to as “inputs”) for the manufacture of final products, cleared in accordance with the provisions contained in any of the notifications
mentioned in the Schedule to this notification, from the whole of the duty of excise leviable thereon which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)
Message likes :
1 times
06 March 2015
Thank you for the reply
Adding on to the question..
Should the company raise an invoice at the time of transfer of material from Location Y to other unit, with Excise component in it??
Adding on to the question..
Should the company raise an invoice at the time of transfer of material from Location Y to other unit, with Excise component in it??
06 March 2015
Materials can be moved under excise invoice on payment of duty. Valuation shall be as per rule 8 of C.E.Valuation (determination of price of excisable goods)Rules 2000 and such values shall be certified by a cost/chartered accountant.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- TDS related Query_Liquidated Damages
- Free lancer income
- Last year TDS Claim
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Soyabean hsn code and gst rate
- NON- SUBMISSION OF LLP FORM 3
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
