Excise duty on stock transfer

Dear Sir,

We are a manufacturer of furniture. We have two unit with separate excise regn. We have transferred some of our stock from one unit to another unit , we have deposited the requisite excise amount. 

Now my querry is --- 1) How I show the amount in ER-1 in Unit -1 ( From where stock has been transferred ). and also

                              2) How I show the amount in ER-1 in Unit -2 ( Where the stock has been transferred) -- We have to take modvat credit on the excise duty amount in this unit.

Awaiting your guidance as early as possible as return date is next week.

Regards

Jayanta

Replies (4)

Your  question is  not clear, you have to transferred the  Finished  Goods or Raw Material ?

If  you hv transferred the inputs (RM)  than you  have  to pay the Excise Duty as input  as  such and  take cenvat  credit  in another plant but..

If  you hv transferred the Finished Goods to other  plant, then you have  to  pay  excise duty from your  existence  plan &  NO Cenvat  Credit  is  available to another plant.

If  your  product  is  Semi Finished  and  another  process will be  carried  out  on another plant you  can  take  the  Cenvat  Credit. 

Dear Mr. Ajeet Singh Ji

It is raw material and duty on the raw material we have deposited already within 5th this month. But my question is how to show in ER-1 in both the unit -- pls guide me.

Regards

Jayanta

as both the units has seperate  registration number, the invoice would be raised at par as the goods are sold to any third party, ( only vat content should be avoided if within the same state, or form F is used) , the transferor can make an additonal comodity in return for the item transferred, if the same is not included in their registration. 

filing of return by transfrer would be also as the goods are cleared to any third party 

..........................

for receiving unit, the same procedure, they would take the invoice entry in input register and under ER1,  would take  credit (if  availing cenvat facility), 

Thanks Mr. U.S.Sharma for valueable feedback.

Thanks once again.

Regards

Jayanta

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