plant to plant Finished Goods Transfer

ANY WAY YOU ARE PAYING EXCISE DUTY THEN ONLY REMOVE YOUR GOODS FROM THE PLANT AND FOR STOCK TRANSFER JUST ATTACH DC and state excise Duty Paid vide give Refrence and move your goods by using the Local sales Tax Form applicable to the state

hi

now what about receiving plant about excise duty

gunasekar.r

goods are removed from the sending plant by paying excise duty why one again  by receiving plant

hi

because both are manfacturing plants with diferent registration

gunasekar.r

thats fine you are asking how to move goods by stock transfer from one plant to another.Suppose Plant A (Sending Plant) wants to transfer goods to Plant b(Receiving Plant) the sending plant will discharge excise duty and then only will make a stock transfer .Plant B will take the same as inputs and any process is done by them and again retransfred then once again excise duty has to be paid and material has to be stock transfered in the method as stated

The DC will have its Transfer Price Value

hi

if it is Rawmaterial, we can take like input ,but it is Finished good-how can we take as input

gunasekar.r

input here i mean just make an inward receipt in that plant (Receiving Plant) since you have to ultimately  reconcile the material movements at both ends

hi

if i sell the material from recieving plant then what about duty

gunasekar.r

From the Factory You will not be selling  the goods except in case of OEM .any way since excise duty is already paid you need not pay excise duty once again on Finished Goods

bla bla bla.... nothing will harm u.. first tell me first sending factory is still running or u wants to close it. or it is running & u want to do it in regular process. both condition are totally different in C.Ex. manner.

 Hi Guna,

The finished goods can be transferred from Plant 1 to Plant 2 by paying excise duty on 110% of teh cost of production of the goods or the transaction value of the identical goods if available.

If u want to sell the goods as such from Plant 2 and these goods qualify as inputs for Plant 2, you can clear the goods under an excise invoice of Plant 2 and pass on the cenvat credit.

If the finished goods are not inputs for Plant 2, Plant 2 needs to get registered as a First Stage Dealer to pass on the credit of the excise duty paid on the goods by Plant 1

Plant to plant transfer is called stock transfer. So you have to pay the excise duty on the material cost (Direct+indirect expe.)+10% value addition. You should also preprare the cost sheet prescribed in form CAS4. This is because it will be helpful to justify that you have paid the correct duty. This will also help you in CAG & departmental audit.

Thanks

Harendra SIngh Negi

 Thanks swati Beautiful explanation