Sale of input goods direct from port

1170 views 7 replies

Dear Friends,

Ours is a manufacturing company and we are importing coal from
outside. We are paying CVD on the coal imported and utilizing the same
against our excise liability payable on the finished product.

However, from next month we intend to sale a small part of the coal
imported to a party directly from the port (the coal would be sold
directly from the port and will not be brought to the plant)

Kindly provide the excise treatment in the books of account and
whether we need to inform the department about the same.

Regards

Replies (7)

To pass on the Credit of CVD

-I think you can draw B/E in your Company's Name A/c your customer's name, address

-You can hire a excise bonded gowndown, register with centreal excise as a dealer and issue issue dealers excise invoices

-If you have orders in hand you can import specific quantities for resale

You can enter into High Sea Sales contract with the party wherein the purchaser is required to pay Customs duty and CVD

no change in process if the sales is made as sales in india after import .

however if you intend to re-export the same without completion of import, then no duties payable.

Agree with Alok can make High Seas sale contract before filing BE

I will agree with Mr. Chandra.  As he rightly said, you suppose to register as dealer.

As I understand high seas sales can be made if the entire consignment is sold.

You will have to order quantities customer by customer in that case.

Simple process is

1.  Register yourself as CE Dealer

2.  Import the goods and pay customs duty and other duties

3.  Raise one invoice on your customer at the agreed rate and pass on all the duties (mention seperately all the duties).

4.  Move the goods directly from port to the customer area.

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