Itc disallowed due to branch transfer and inter state sale

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MANAN VORA (Querist)
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06 June 2014 Dear All,

We are manufacturing company in Gujarat.We have depots outside Gujarat i.e. in other states.We are transferring stock to depot as Stock Transfer and Depots are selling material onwards.

Now the question is the ITC Disallowed due to Branch Transfer and OGS Sale will be part of Production Cost.

When we will do valuation of Finished goods,whether it will be part of cost or not.

Thnks.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 June 2014 u need to follow AS-2 valuation of inventories and only those cost of production which are allowed as per as 2 is to be taken into account for valuing finish goods.