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!

[B. Naga Rami Reddy]

Sir.

Excise duty paid Ice cream Stock transfer from the factory to your company's outlet would not be treated as sale thus there would not be sales turnover doubling as apprehended.

[Guest]

Correct me if it's different from what I understand, Excise can be levied/Paid while doing the stock transfer? Resulting in no excise invoice required to be generated while selling the product to the end consumer? But what about the invoicing?

AI Summary

Excise applicability on packed ice cream: paying excise at stock transfer may avoid duplicate excise invoices at retail. Excise distinguishes vending-machine dispensed ice cream (not excisable) from packed ice cream (excisable). The company proposes paying excise on stock transfers from factory to outlets to consolidate liability and avoid excise invoicing at retail. A reply states excise-paid stock transfers to company outlets would not be treated as sales for turnover purposes, mitigating fears of doubled turnover. Practical questions remain about how retail invoicing should be handled to prevent duplicate accounting while maintaining compliant records.