general
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 June 2010
sir wht is meant by semi-knocked down goods n completely knocked down goods can u explain me with simple example,
20 June 2010
In a simple example
Cycle manufacturing
Producing all the parts of cycle but not fixing the part as full cycle, but selling all the parts for fixing a cycle as a set - Semi Knocked down goods
Producing the all part of cycle and fix the same make compltete cycle- Completely knocked down goods
Cycle manufacturing
Producing all the parts of cycle but not fixing the part as full cycle, but selling all the parts for fixing a cycle as a set - Semi Knocked down goods
Producing the all part of cycle and fix the same make compltete cycle- Completely knocked down goods
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 June 2010
sir but the word CYCLE is an example of bicycle or it is a process of cycle n last accordin 2 ma opinion when v disassesmbled the goods partly is it knwon as semi knocked n if goods disassesmbd fully kwn as compeltelty kd.is i m correct or not
25 July 2024
Certainly! Let's clarify the concepts of Semi-Knocked Down (SKD) and Completely Knocked Down (CKD) goods with simple examples:
### Semi-Knocked Down (SKD) Goods:
Semi-Knocked Down goods refer to products that are partially assembled but require further work or components to be added before they can be considered a finished product. This stage is often associated with assembly lines in manufacturing, where components are shipped to the assembly plant in partially assembled form.
**Example:**
Imagine a company that manufactures cars. If the engine, chassis, and major components like doors and seats are shipped separately to the assembly plant, where workers then assemble these parts together to form the final car, this would be an example of Semi-Knocked Down goods. The car is not fully assembled yet but is partially completed with major components.
### Completely Knocked Down (CKD) Goods:
Completely Knocked Down goods refer to products that are shipped in separate parts and require assembly of all components before they can function as intended. These goods are shipped in a completely disassembled state, usually to save on shipping costs or to comply with local assembly regulations.
**Example:**
Continuing with the car manufacturing example, if the car components are shipped in a completely disassembled state — with the engine, chassis, doors, seats, wheels, and all other parts shipped separately — and then assembled from scratch at the assembly plant, this would be an example of Completely Knocked Down goods. Each component needs to be put together to form the final product, which in this case is the car.
### Cycle Example Clarification:
Regarding your query about the word "cycle," it can indeed be confusing due to its multiple meanings. In manufacturing terms:
- **Cycle (as in Bicycle):** This refers to a complete product, such as a bicycle, which is the final assembled unit ready for sale or use.
- **Cycle (as in Process):** In a manufacturing context, "cycle" can also refer to a process, such as the assembly cycle where components are put together to form the final product.
### Disassembled Goods:
Your understanding is correct:
- **Semi-Knocked Down (SKD):** When goods are partially disassembled, meaning some major components are disassembled but not all, it falls under SKD.
- **Completely Knocked Down (CKD):** When goods are fully disassembled into all their individual components, it falls under CKD.
These terms are commonly used in manufacturing and assembly processes to describe the state of goods during transportation, assembly, and sale. The distinction between SKD and CKD helps manufacturers and regulators understand the level of assembly required and can impact tariffs, taxes, and shipping costs associated with the goods.
### Semi-Knocked Down (SKD) Goods:
Semi-Knocked Down goods refer to products that are partially assembled but require further work or components to be added before they can be considered a finished product. This stage is often associated with assembly lines in manufacturing, where components are shipped to the assembly plant in partially assembled form.
**Example:**
Imagine a company that manufactures cars. If the engine, chassis, and major components like doors and seats are shipped separately to the assembly plant, where workers then assemble these parts together to form the final car, this would be an example of Semi-Knocked Down goods. The car is not fully assembled yet but is partially completed with major components.
### Completely Knocked Down (CKD) Goods:
Completely Knocked Down goods refer to products that are shipped in separate parts and require assembly of all components before they can function as intended. These goods are shipped in a completely disassembled state, usually to save on shipping costs or to comply with local assembly regulations.
**Example:**
Continuing with the car manufacturing example, if the car components are shipped in a completely disassembled state — with the engine, chassis, doors, seats, wheels, and all other parts shipped separately — and then assembled from scratch at the assembly plant, this would be an example of Completely Knocked Down goods. Each component needs to be put together to form the final product, which in this case is the car.
### Cycle Example Clarification:
Regarding your query about the word "cycle," it can indeed be confusing due to its multiple meanings. In manufacturing terms:
- **Cycle (as in Bicycle):** This refers to a complete product, such as a bicycle, which is the final assembled unit ready for sale or use.
- **Cycle (as in Process):** In a manufacturing context, "cycle" can also refer to a process, such as the assembly cycle where components are put together to form the final product.
### Disassembled Goods:
Your understanding is correct:
- **Semi-Knocked Down (SKD):** When goods are partially disassembled, meaning some major components are disassembled but not all, it falls under SKD.
- **Completely Knocked Down (CKD):** When goods are fully disassembled into all their individual components, it falls under CKD.
These terms are commonly used in manufacturing and assembly processes to describe the state of goods during transportation, assembly, and sale. The distinction between SKD and CKD helps manufacturers and regulators understand the level of assembly required and can impact tariffs, taxes, and shipping costs associated with the goods.
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
- Change details filed in original return
- Negative liability in GSTR-3B
- Query on applicability of Small Company, CARO & IFC
- Hsn for gst 9 purchases
- Treatment of professional fee to employee
- GSTR - 9 Input Tax Credit
- REGARDING RETURN FILING OF CLIENT WHEN THE TDS HAS BEEN DEDUCTED UNDER SECTION 194J(b)
- Tds on interest ON BAJAJ
- Applicability of GST on Paying Guest
- Schedule VDA
- Delay in Processing of return
- Cant amend a 26QB
- RCM PAYMENT BY SERVICE PROVIDER
- Admob/Adsense income
- Where to show ITC re-claim amount in GSTR 9
- GSTR 9 table 4 and table 10 query
- GST on Rent a Car Service
- Multimodal Transport
- Exchange old jewellery to new Jewellery from unregistered dealer.
- GSTR-9 TABLE-6A1
Trending Online Classes
CAclubindia
