Process of transferring excisable goods to other unit.

710 views 7 replies

CA Kumar Rahul

Asst. Manager Finance

45 Points Joined October 2009

Hello everyone! Wish you all a very happy new year ahead.

My question is what is the process for transferring excisable goods to another manufacturing unit of same concern when-

(a) ssuch excisable goods is transferred while in transit; and,

(b) excisable goods is already received in the factory of unit originally buying the goods.

Please note that the invoice is in the name of transferring Unit and Cenvat needs to be claimed on the goods transferred.

For example, suppose A has bought excisable goods from X. Invoice has been issued in the name of A. Goods has been transferred to B by A. Now the question is what should be the lawful process for such transfer so that Cenvat is not lost and no provision or rule is voilated. Please suggest in following two conditions-

(a) such excisable goods is transferred while in transit; and,

(b) excisable goods is already received in the factory by A.

Would appreciate a precise and to the point suggestion/ discussion.

Replies (7)

sivaram

Asst Mgr-Taxation

6918 Points Joined April 2009

Goods transfered from one unit to another

Goods can be billed to A but consigned to B thereby B can take cenvat credit

the other part when received directly and how to pass on the credit to the other i am not aware of the same

Mahender

Accountant

27 Points Joined March 2012

What is the procedure of remove good from manufacturerto a job worker on Job work Challan

Mahender

Accountant

27 Points Joined March 2012

Originally posted by : Mahender
	What is the procedure of remove good from manufacturerto a job worker on Job work Challan

sivaram

Asst Mgr-Taxation

6918 Points Joined April 2009

You can use 45ab challan to move goods from one job work unit to another

Pawan Jain

CA Job

23 Points Joined September 2012

When goods have not been received and are required to be transferred directly, receiving units must be mentioned as consignee. In the second case, a invoice needs to be raised, excise is to be availed 1st and then will be reversed.

CA Kumar Rahul

Asst. Manager Finance

45 Points Joined October 2009

@ Sivaram- The option of B mentioned as consignee doesn't arise as invoice has already been raised with A as consignee.

CA Kumar Rahul

Asst. Manager Finance

45 Points Joined October 2009

@ Pawan Jain-Thank you for your valuable input. As already told, invoice has already been raised with A as consignee. Please suggest the other way out. Also, would you please elaborate about the second part. Does A need to issue cenvatable invoices in the name of B. And should A first take the Credit and then reverse it and allow the receiving unit to claim cenvat on incoice raised by it.