Treatment of dead stock determines whether slow moving jewellery is classified as manufactured or traded stock by cumulative receipts and sales. Classification of dead stock depends on whether it forms part of manufactured or traded stock; for assessees under the optional scheme, compare cumulative sales (duty paid or exported) with cumulative manufactured receipts for each article type. If cumulative sales equal or exceed receipts, all dead stock is deemed traded stock and remade articles are traded; if sales are less, the difference is deemed manufactured stock (with remade articles treated likewise) and any excess dead stock is treated as traded stock.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Treatment of dead stock determines whether slow moving jewellery is classified as manufactured or traded stock by cumulative receipts and sales.
Classification of dead stock depends on whether it forms part of manufactured or traded stock; for assessees under the optional scheme, compare cumulative sales (duty paid or exported) with cumulative manufactured receipts for each article type. If cumulative sales equal or exceed receipts, all dead stock is deemed traded stock and remade articles are traded; if sales are less, the difference is deemed manufactured stock (with remade articles treated likewise) and any excess dead stock is treated as traded stock.
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