banner_ad

How to route transaction for excise credits

576 views 1 replies

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".


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details