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Treatment of excise in books??

Ankit Sharma (Officer - Accounts & Finance) (43 Points)

29 July 2013

Hello,

I'm working in organisation where we sell LED tubelights & bulb. We don't have manufacturing capacity still, so we gave our technology to other organisation for manufacturing the products. Recently we got an order of about 5 Crore. So what will be the treatment under Excise Law..... like who will pay excise?? How much ?? When?? is there any Job Work Concept? if yes then what will be the treatment of these transactoins in books.... ?

Please let me know with reference, if any.........

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3 Replies

kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 30 July 2013

IN CASE OF "NORMAL GOOD" ---REAL MANUFACTURER AT THE TIME OF REMOVAL FROM REAL FACTORY AS THE MANNER SPECIFIED IN RULE 8 OF CER,02

IN CASE OF MOLASSES AND BRANDED READYMADE GARMENTS...............PROCURER AND BRAND NAME OWNER RESPECT. AT THE TIME OF RECEIPT OF MOLASSES AND REMOVAL FROM FACTORY RESPECT.

HENCE JOB WORKER CONCEPT IS NOT RELEVANT IN UR CASE...

WAIT FOR EXPERT OPINON..

kumar hattanna (Officer - Excise) (525 Points)
Replied 31 July 2013

Dear Ankit Sharma

1. Only Manufacturing or Producer of final product can discharge the excise duty.

2. IF its not exmpted anywhere in excise law, you need to check in central excise terrif act 1985.

3. Excise duty is payable, when goods are removed from the factory or from the place of manufacterer.

4. In your case No job work concept applicable.

Regards

Kumar

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 31 July 2013

Central Excise duty liability will be on manufacturer of goods. SSI exemption will be available upto 1.5cr. Manufacturer will pay the excise duty after ssi exemption. No duty on jobwork if duty paid on final product.