How to route transaction for excise credits

A is a manufacturer having excise registration and B is also a manufacturer having excise registration. A gives order to B for supply of certain machinery which includes a bearing to be supplied free of cost from A. Now the supplier of bearing bills it to a A and name of consignee is B. The bearing is directly delivered to B.

Ques.1 How the excise credit will flow to A ?

2 Will A make entry of purchase of bearing in its book and then entry of sale to B?

3. At what point of time credit of excise will be available to A?

emailid: caabhishekmaloo @ gmail.com

Replies (1)

Since the supplier is directly supplying the material to "B", "B" can avail cenvat credit based on the transporter copy.  After completion of machinery, "B" transfers the machinery to "A" by paying excise duty.  Mr. "B" has to consider the value of material obtained from "A" at free of cost for his final product.  Here "A" cannot avail the credit of bearing but can avail the credit on machinery.  "A" has to make entry of purchase of bearing and has to make entry for "Free samples/sales".

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details