KIYOSH (TAX CONSULTANT) 28 May 2011
'A' is partnership firm & register under excise as dealer.
'A' buy material from either manufacturer OR traders & than sale it to customer by passing excise.
my query is
when material reject by customer & send it back to 'A' than what procedure should A follow.
(i) 'A' have to inform to excise office for material rejected by customer
(ii) what about the excise return by customer to 'A' ? CAN 'A' TAKE BACK CREDIT OF EXCISE WHICH PASSED TO CUSTOMER.
(iii) what entry to be done in books of account relating to excise credit.
Thanks in advance
U S Sharma (email@example.com) 28 May 2011
on rejection the client will return the materials and invoice, alongwith a certificate from the client's range officer that the duty credit availed on the strength of invoice of A is reversed vide entry sl no .......dt .........
Now A is free to sell off the goods again by entering it in RG23D or return the goods to original manufacturer, as he may like
there is no duty debit credit on the part of dealer, he is acting mere as pass book for both manufacturers, he can not encash the balances by own.
KIYOSH (TAX CONSULTANT) 29 May 2011
Thank you very much Mr. U S Sharma.
Customer reject & return material & issue their excise invoice wherein they have mentioned our name in consignee & buyer. On their excise invoice they have also mentioned that material rejected & return to party. There is no such certificate from range office is given.
Secondly, do we need to inform our range officer that material reject & return by the customer to us. If yes than is there any time limit for that ?
While entering exicse in RG 23D register, what I suppose to write. Under Manufacturer details should I write name of original manufacture & his invoice details OR Our customer name & his invoice details.
Awaiting your valuable response.
Thank you again.
U S Sharma (firstname.lastname@example.org) 29 May 2011
when the manufacturer returned goods on their own invoice, then you have to open a new page in RG23D and maintain as new receipt.
to save the compliance of queries faced at audit stage, submit to range superintendent of your range, a letter with details of transaction and the procedure followed, ( preferably within 24 hrs of receipt of goods), it will confirm countersign of R/O on this transaction.
nilesh joshi (Accounts) 29 March 2012
My query is releted to rejection material /
Suppose A co. supplies goods for B , but B can reject some goods u/s.3(5) and send it rejection invoice copy send with excise duty charged. So in that case credit of excise duty can avail or not please clarify above matter.
Please clarify and tell me how to procedure about the rejection material recd from customer.
satya (Executive Excise) 29 March 2012