Sale of Raw Material
This query is : Resolved
08 July 2011
A registered manufacturer 'A' manufactures Product 'X' using raw materials 'Y' an 'Z'. All the three items X, Y and Z are chargeable to Excise Duty. 'A' is also interested in trading of 'Y' & 'Z'. Now my queries are:
1. Is 'A' required to take any specific permission or registration as Dealer with Excise Authorities for trading in Raw Material or can 'A' sell 'Y' & 'Z' showing it as removal as such.
2. Are separate stock record required to be maintained for trading and manufacturing stock of raw materials.
3. Are separate set of invoices necessary for removal of raw material as such.
4. Is the buyer eligible for cenvat credit on purchase of 'Y' & 'Z' sold by 'A'.
1. Is 'A' required to take any specific permission or registration as Dealer with Excise Authorities for trading in Raw Material or can 'A' sell 'Y' & 'Z' showing it as removal as such.
2. Are separate stock record required to be maintained for trading and manufacturing stock of raw materials.
3. Are separate set of invoices necessary for removal of raw material as such.
4. Is the buyer eligible for cenvat credit on purchase of 'Y' & 'Z' sold by 'A'.
08 July 2011
to trade similer nature of goods in regular manner, such goods can not be brought inside the manufacturing premises, however the assessee has option in hand......
1) to get registered with excise as dealer for inputs and finish goods but the area of storage should be distinguished from manufacturing area.
or
if its incidental then he can sell Y&Z by reversal of input credit on the basis of "as it is " condition. but he can not bring X into manufacturing premises. He can sale such goods in transit only.
2. delaer invoice and RG23D should be maintained by dealer.
3, for incidental clearance of raw materials no need to maintain seperate invoice, invoice for home consumption would suffice the purpose.
4. Yes buyer is eligible for input credit on the strength of invoice issued by A.
1) to get registered with excise as dealer for inputs and finish goods but the area of storage should be distinguished from manufacturing area.
or
if its incidental then he can sell Y&Z by reversal of input credit on the basis of "as it is " condition. but he can not bring X into manufacturing premises. He can sale such goods in transit only.
2. delaer invoice and RG23D should be maintained by dealer.
3, for incidental clearance of raw materials no need to maintain seperate invoice, invoice for home consumption would suffice the purpose.
4. Yes buyer is eligible for input credit on the strength of invoice issued by A.
08 July 2011
Thanks a lot.
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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Regarding appeal to GSTAT
- Regarding TDS Applicability For Director Remuneration
- Multiple trade mark
- Transporter Declaration form
- Copyright software
- Value of property in capital gain
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- RULE 86B APPLICABILITY IN QRMP TAX PAYER
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
