LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Excise related

Sharath (Accounts Executive) (27 Points)

20 April 2017

We have two manufacturing unit in banaglore having different excise reg no(Unit I & Unit II) & the product manufacturing is also different. The product(FG) produced in Unit II same transferred to Unit I bangalore we are sending goods in DC on this we are paying excise duty on removal of goods from Unit II.

But we are selling goods from Unit I having Address is Unit I in Tax Invoice.Please let us know the procedure is correct or not & also please guide the porper procedure to follow.

Reply
Follow
Share

2 Replies

Dilip Darji (392 Points)
Replied 20 April 2017

Till 30/06/2017, you can transfer FG from Unit-II to Unit-I, without payment of excise duty. On removal to the customer,, either of Unit-I or Unit-II, you are required to prepare excise Invoice from Unit-i and sale the goods from Unit-I..

However, what for the goods are sent from Unit-II to Uniot-I ?

Sharath (Accounts Executive) (27 Points)
Replied 21 April 2017

The goods which are being manufactured is a Consumer Durable commodity and we don't have proper storage facility and accounting staff at Unit II Hence the goods are being tranfered from unit II to Unit II godown located at unit I premises by paying excise duty on DC. Here in Unit I we have space to store the goods hence we are treating it as godown for Unit II and the Sales invoice is raised in the books of unit II itself in the address of Unit II godown.