“A” entered in to agreement with “B” for processing the excisable goods. All raw materials billed to “B” and will be provided by “B” to “A” for processing. “A” will get processing charges from “B” in consideration. All finished goods will belong to “B” except the “By Product” which "A" can retain and sell.
Now my question is- Can “A” sell this “By Product” to “B” or other party. If yes what will be the entries in respect of excise and vat. How could "A" bring this product in it's stock for further transaction.
Please provide your expert opinion on this matter
Diwakar Rege
CAclubindia
