Transactions between Excise and Non Excise Manufacturing uni

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2011 We have a non Excise chemical manufacturing unit

We have customers who are in excise and non excise.

All the raw materials we are purchasing are from a excise unit, presently we are not taking any mod weight of excise duty. as our unit is not in excise.

we want to convert out unit into excise unit and start a new unit with different name and in non excise.

How will be my transactions between these two units.

can some one explain me....thanks in advance.

U S Sharma

U S Sharma (Expert)
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17 July 2011 under same management all units / factories are to be covered under excise,

if you take modvat on your purchase, then you have to pay duty on your finish goods clearance from start, without availing any basic exemption.

if you clear to 2nd unit ( diff management must be ) then you have to clear on duty payment.

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