Cenvat Inplications

hello frenz,

i have a doubt regarding the excise duty and cenvat

example

Manufacturer X purchases raw material Y for manufactue of a final product.He also does trading for that raw material Y.Now he sells the purchased rawmaterial Ywithout using in the manufacture process.He paid the excise duty on such rawmaterial when purchase is done.Mydoubt here is,what are the CENVAT implications and what all items will come in the invoice issued for selling such raw material?

Replies (6)

 

Raw material used in manufacturing final product is eligible for input credit but if final product is duty able.

Originally posted by : kinnary
hello frenz,
i have a doubt regarding the excise duty and cenvat
example
Manufacturer X purchases raw material Y for manufactue of a final product.He also does trading for that raw material Y.Now he sells the purchased rawmaterial Ywithout using in the manufacture process.He paid the excise duty on such rawmaterial when purchase is done.Mydoubt here is,what are the CENVAT implications and what all items will come in the invoice issued for selling such raw material?

at the time of selling raw materials he has to reverse the credit of duty taken on material Y. 

he has to use his home consumption invoice to sell out the raw materials, he has to make a note in invoice regarding original duty taken position and reversal of same. 

Yes, I agree with U.S. Sharmaji.

Regards

HS Negi

yes i am also agree with mr. U.S. Sharma

Im agree with US SHARMAJI,,  seperate invioce is raise for raw material Y.  and reverse the Excise Duty,  and mention in that invioce ," REMOVED AS SUCH"

don't  include   raw material Y   in the removal of finished products Invioce.    seperate serial number is allocate for remove as such.

Originally posted by : Durga prasad Ambati

Im agree with US SHARMAJI,,  seperate invioce is raise for raw material Y.  and reverse the Excise Duty,  and mention in that invioce ," REMOVED AS SUCH"

don't  include   raw material Y   in the removal of finished products Invioce.    seperate serial number is allocate for remove as such.

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