stock transfers-excise duty

hi

my company have two plants,this plants located in deferent states.

now one state have excise and another state have excise exemption,now we want to transfer stock -excise aplicable state to exemption state

 

what can do

 

 

Replies (3)

It will depend on in which excise exemption state your 2nd unit is. Because deifferent state have different rules. Like one condition for J&K/North East and another for Uttarakhand/Himachal. However in my opinion, you have to charge excise duty on stock transfers from 1st unit, but your 2nd unit (excise exemption zone) can not take its CENVAT credit if it is in Uttarakhand.

Originally posted by :Vaibhav Agrawal
" It will depend on in which excise exemption state your 2nd unit is. Because deifferent state have different rules. Like one condition for J&K/North East and another for Uttarakhand/Himachal. However in my opinion, you have to charge excise duty on stock transfers from 1st unit, but your 2nd unit (excise exemption zone) can not take its CENVAT credit if it is in Uttarakhand. "

 

as per as ur answer

what is the right answer

plant 1

1. customer a/c    Dr                1100      

          To excise pay a/c                    100

          To Sales a/c                            1000 

plant 2(exemtion state)

    have i to add excise to material or not

for example :

inventory value 1000 or 1100(asper billing)

thank you

 

 

for exemption state inventory value should be 1100, as you can not take credit of excise duty.

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