Levy of excise duty

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2011 Dear Sir/Madam,

My company is manufacturing concern and having liability of excise duty. I Reported finished stock of Rs. 82 lacs to excise dep on 31.03.2011 and accordingly make provision of excise duty. Sir now I wanted to covert such stock into sales by making provision of sales because such FG were made for one of my client. I will pass the below entry for the same transaction

Income Receivable A/c Dr.

To Sales
To Excise Duty

As per my understanding excise duty will be leviable only at the point of manufacturing but payable only at the time of removal from factory

I wanted to ask you is there any liability on me arises if I am converting such stock into sales

U S Sharma

U S Sharma (Expert)

27 August 2011 manufacture in excise is related to RG-1 ( DSA) where the gross finish goods are reflected, and provisions of valuation and excise duty is part of accounts (not related to excise documents directly), and the excise duty is not debited at the time of provision even.

at the time of sales, the sales will be made on Invoice, with assessable value, make entries in RG-1(DSA) and pay duties, by reversing the entry of provision of excise duty, as the valuation may differ than what it proposed in accounts for finished goods, duty will be payable at actual invoice basis assessment only.

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