Same product of inter unit company

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Dear Expert,

If  same finished product of inter unit company and i want to these finished product transfer/sale to other unit company. What will be the excise implication. Pl. explain in brief.

Thanks 

Replies (8)

KIndly eleborate the que. What is mean by same FG inter unit

it should be cleared on invoice for home consumption on payment of duty to its sister concern.

same FG product means both unit manufactured one product. if we clear these product by raise invoice then what will be the treatment of receiver company. is receiver company treat these product as a trading goods or as a input material. 

If another unit is processing on the transferred goods then it will trated as Input. If another will not process on same goods & clear same as such then same will amount to trading.

But in both cases another unit can avail cenvat on the basis of invoice.  

how can we treat identical goods as a trading goods. pl. explain.

@ Ram

 

its not a wise thought to clear the identical goods to another factory of same assesssee, as the same would create confussion in maintaining the stock

you have to use seperate premises for storage of such goods and get dealer registration for that premises, for bringing in and clearing such goods from another factory.

if the above provisions are not maintained, then just realize the situation , that anti evasion wing enters your premises and book a case that such goods which are taken inward from other factory are product of factory of storage, and books case of evasion and fraudnent activities, then you wil have no proper safeguard. 

avoiding such situation is better option. 

we have seperate premises and seperate registration but goods are indentical. both unit are manufacturer. can we treat one unit product as a trading goods for other unit.

dear  same item if you want  to sale in your 2nd unit , the only  way you can do by trading i.e availing   trading licence and also  in other premises and by maintaining proper records. in another , it would be your problem, although you make inter transfer by debiting duty by  raising invoice. CAS-4 IS REQUIRED  but it is not wise to do in this way .  


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