Dear Experts,
I request your expert opinion with regard to transfer of Finished goods from one unit(A) to another unit (B) which is located in another state. Both the units are registered with Central Excise as Manufacturer.
Our Requirement
Unit A will transfer its finished goods to Unit B for further manufacturing.FG transferred from unit A will be an input for the unit B. Unit B will complete all production process and make the sales to Customers directly, ie, clearance of the final finished products will be from unit B.
Expert opinion required.
1. What is the procedure to be followed for doing the above transaction?
2. How to calculate ED for the same?
3. Whether unit B is allowed to take CENVAT credit since it is an input for them?
4. In Central Excise law, any where any remarks is for such transactions.
5. Please provide Excise notification no or Circular no or Excise rule details for such transaction.
6. What would be the Sales Tax point of View for such transactions.
Looking forward for a faster and suitable reply.
CAclubindia
