Reg-free issue material

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Dear Sir,

My customer 'A' is having a manufacturing unit of Electrical L T Control PAnels. 'A' is under central Excise. 'A' s one of his customer 'B' issuing some Items to use as a input material for manufacturing panel. B is issues material in CE invoice ie 0 value invoice.

How to account this transaction ?

How to bill ? 

is A need to take CENVAT Credit ? IF yes , How to account it? and How to reverese the same while billing to B?

What is the PRocedure for this?

And in ER - 3 Where we have to show this type of transactions?

Kindly help us by suggesting,

Thanking you

REgards

Thipperudra

Replies (2)

This appears to be case of jobwork under rule4(5) of the Cenvat Credit Rules,2004. Whether excise duty is being shown separetely in the invoice?

 

Mail details at advrcverma @ gmail.com

Raksh*t

ya sir, the details of excise duty, cess and all shown in invoice.

They have shown like this

Basic value of the goods

Excise duty

Education cess 

Sec ed cess

They mentioned the following in remarks colum

Goods on free of charge basis on returnable basis by use in the manufacture of goods to be supplied to us.

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