Excise on ice cream!

[Guest]

Hi Friends,

I work at an ice cream manufacturing company and we have just found ourselves in a tricky situation. Since Ice Cream coming out of a vending machine does not fall under Excise Duty, all the sales made till date through outlets never had any excise applicable on it.

Now the company is expanding and are going to take individual orders from customers where the orders placed online will be collectable from the outlets and/or from the local distribution Centre. Now things get tricky here! Packed ice cream boxes are Excise applicable. Lets say the company is going to start operating with 10 new outlets/distribution Centre it will expect to sale approximate 1000 liters or 1000 sales transactions per day to be precise. that means they'll have to produce 1000 excise invoices a day! 1000*365= 365000 invoices per year which will have to be stored for 7 years and the invoices cant be in thermal print since it fades away within days!

To tackle this scenario i am thinking if an excise sale could be booked while the stock is transferred from the factory to the Outlet/DC, that should settle the sale with a single transaction but the problem here again is that the customer will have to be billed anyway and again the POS system will book a sale again for the same stuff meaning duplication of sale which would lead to company turnover doubling which obviously isnt practical since the company would be paying commissions to sales managers on turnover!

I know its a lengthy, confusing and tricky query, at least to me! hope you guys can sort it out!!

thanks!

AI Summary

Ice Cream Company Questions Excise Duty on Online Sales; Seeks Clarification on Stock Transfers and Invoice Storage Rules. An individual from an ice cream manufacturing company raised a concern about excise duty implications when expanding to online sales with customer pickups. Currently, ice cream from vending machines is exempt from excise duty, but packed ice cream boxes are not. The company anticipates generating a large volume of excise invoices, which must be stored for seven years. One solution proposed involves treating stock transfers from the factory to outlets as excise-paid transactions, potentially avoiding duplicate invoicing issues. A respondent clarified that such stock transfers would not count as sales, thus not affecting turnover calculations.