INTER UNIT TRANSFER SHOWS IN ER-1 RETURN

[venkat eswaran]

Dear Experts,

We have 2 manufacturing units in Tamil Nadu. in different area.  There are transfer of matls semi-finished, finished and RM in between units. from unit-2 all finished goods coming to unit-1 only. There is no direct despatch to customer place from unit-2. all the goods are coming to unit-1 only with payment of duty.

In this case how i can show in ER-1 return. Whether col.3 Details of manufacture, clearance and duty payable to be shown in ER1. or all the removal of goods to be shown in under inter unit transfer of goods directely in col. no.5 ?

If we remove Raw matls as such from one unit to other unit Whether we have to show this transaction under credit utilized in inputs removed as such in Col.5. OR we have to show in Credit utilized in Inter unit transfers?

Kindly give your views 

Thanks in advance

Venkat

AI Summary

Clarification Sought on Reporting Inter-Unit Transfers in ER-1 Return; Guidance Given Under Rule 12 BB A company operating two manufacturing units in Tamil Nadu is seeking guidance on how to report inter-unit transfers of materials and finished goods in their ER-1 return. All finished goods from unit-2 are transferred to unit-1 with duty payment, with no direct dispatch from unit-2 to customers. The query asks whether these transfers should be reported under column 3 or column 5 of the ER-1 return. Respondents advise that inter-unit transfers for Large Taxpayer Units should be reported under columns 4 and 5, while others should report duty-paid clearances in column 3, referencing Rule 12 BB for further clarification.