Excisable rm adjustments

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Dhaval (Querist)

29 November 2012 Hi All...

We are into mfg unit.......we had a physical stock taking last month and based on which we found diff between System stock (ERP) and Physical count.

How we can account physical stock in the system considering Excise Impact ??? we have the provision in the system to account Adjustment entry but my only concern is of Excise Impact.

Pls guide !!!

Arun Kumar Singh

Arun Kumar Singh (Expert)

29 November 2012 you are aware that where is difference and give the factual reason for account adjustment.

Dhaval

Dhaval (Querist)

29 November 2012 Yes Mr. Arun..

We have counted physical stock only once in this FY......
as far as RM showing More in the system but Less in physical we are showing one production entry to adjust RM stock and we are also recording FG out of that adj entry into RG-1

but i m confused abt Less in system stock and more in physical........what entry can be passed and where to show in excise records.

Arun Kumar Singh

Arun Kumar Singh (Expert)

29 November 2012 remaining balance of raw material you can show in waste and scrap. waste and scrap should be cleared from factory with payment of excise duty.

Dhaval

Dhaval (Querist)

29 November 2012 In case of Clearing material as a Scrap....does we need to pay Excise duty in the apportion of Cenvat Received on the purchase of respective RM or any other valuation can be consider ???

Arun Kumar Singh

Arun Kumar Singh (Expert)

29 November 2012 you can pay the duty of scrap from cenvat credit.

Dhaval

Dhaval (Querist)

29 November 2012 Thinking other way.......can it possible to record excess physical RM as a Free samples received ??? in this case might be No excise duty will impact on RG 1 as well as Cenvat register......
Correct me if wrong !!!

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