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Lesser Quantity recieved

499 views 3 replies

Hi,

My query is

A Company recieved certain excisable goods from company B, if B company has invoiced say 250 Kgs of some excisable commodity to A, but A company has recieved on 220Kgs of same goods and settled the transaction for amount equal to worth of 220 Kgs only.. Can A Company avail input excise credit for whole 250Kgs, as the invoice from B is claiming to have removed 250Kgs of product from its factory?

 

I came to know that the a company can avail full excise credit if final settlement amount is settled at lesser than invoice amount.. but i want to clarify if this facility is availble only for discounts or even for instance said above

 

Thanks in advance.. am waiting .... Ciao

Replies (3)

shortage of materials will account proportionate credit only. 

when materials are lost in transit, then duty also lost in transit proportionate way. so the buyer is entitled to take proportionate credit on actual goods received only.

it means to say, you only take credit for the product you input and not the product shown in the invoice.. so only the excise duty on product recieved or used for manufacture only can be tken as credit. Right?

 

 Yes perfectly right.


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