30 November 2012
Sir, we purchased goods , after issuing goods to production , production again check goods, some time they they reject some qty from issued qty they receiv for production. after completion of product they inform a/c dept. to raise debit note for online rejected qty. a/c dept accordingly raise debit note to supplier for the online rejected qty.showing basic value + 12.36 % excise + vat .suppose purchase rate is say 100 Rs.per kg. & online rejected qty is 50 ks. a/c dept.raise debit as under 50 x 100 = 5000 Basic Value Excise = 618 12.36 %Excise duty Vat = 218 5 % Vat ======= Total 5898.00
but customer insist to raise debit for Basic Rate amount only.
question 1- can online rejection qty attract Excise or not? 2- can we deduct excise amount of rejected qty. though rejcted qty physicaly not reach to supplier. 3- what will be exact excise procedure for online rejection qty.as rule which must be applicable to supplier and buyer
02 December 2012
you have to issue "invoice" under your process and send the rejected goods back to supplier,
if the goods are retained with you, then neither department nor the dealer is liable for the duty and vat which were contained with rejected goods. and you are liable to reverse the credit on rejected goods from your own pocket.
CAclubindia
