Exemption of excise duty on captive consumption of furniture

We are in a production of Furniture and we produce one furniture for our Office use then what is the accounting treatment for that and any excise exemption available for that?
Replies (3)

You can not clear the goods unless you pay the Excise duty from your manufactuing site to be it your own office or sale !!! Once you pay the excise duty, you can always use such furniture only if it is used for providing taxable services / production of taxable goods.

you can simply pass an entry like..... Capital Goods A/c  To Inventory A/c .

 

issue an invoice in name of self, for the furniture to be used by self, 

if you avail input credit on capital goods and subject furniture qualify the capital goods criteria as per CCR 2004 then you can take credit also on the strength of that invoice, ( normaly furniture is under negative list, unless it is special purpose furniture, mandatory to perform the manufacturing activity)

Exemption u/n 67/95 availabel for goods further used in manufacturing other goods or if that is a component of another finished product liable to duty., Furniture ( work bench) used in factory maybe said to be used further in manufacture and therefore eleigibel for this exemption. 

In all other cases, duty needs tobe paid on the valuation of similar goods if available. otherwise on COP +10%. 

 

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