Inter unit transfer of excisable non cenvable goods

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This query is : Resolved

C.A Alok Mukherjee (Querist)

21 August 2014 Dear All,

We have two manufacturing units within West Bengal. Both the units are registered with Central Excise. Our product applies specific duty as per notification 1/2011 which is presently 2%. We are not eligible for Cenvat credit. If we want transfer our finished product from one unit to another unit for storing and sale from there end. How can we do this?
Pls help, this is urgent.

Rupesh Jain

Rupesh Jain (Expert)

21 August 2014 if you are mfg the product the and tfr to another unit of yours . then you have to show the "10% addition of inter unit tfr" on invoice then then you have to charge the excise duty. its compulsory.

as per excise if you consume the product in house then you have to take 10% margin of the cost . it is not necessary that your rate to customer or to your unit is same. only 10% is compulsory to show on the invoice.

C.A Alok Mukherjee

C.A Alok Mukherjee (Querist)

22 August 2014 Mr. Jain

Thanks for your reply. In our product MRP less 35% abatement is considered as assessable value. Secondly, it is not meant for captive consumption of other unit or by means of any secondary packing. It is purely for storage and sale in complete form.