We are selling our finished goods to related persons as well as to non-related persons. The value of goods sold to related persons determined as per Rule 10 of the valuation rules i.e. excise duty would be payable on 110% of cost of production of such goods. Notification No. 14/2013 - CE (N.T.) dated November 22, 2013 with effect from 01.12.2013 onwards.
Kindly give your valuable guidance for keeping Excise record to avoid any litigation & to satisfy the Excise auditors during the audit of our unit.
Regards,
VINAY
Guidance on Excise Record-Keeping for Related Party Sales: Importance of CAS-4 Certificate and Rule 10 Compliance A discussion in a forum focused on the excise records required when finished goods are sold to related parties. The original query sought guidance on maintaining records to avoid litigation and satisfy excise auditors. Responses highlighted the necessity of obtaining a certificate from a Cost Accountant, certifying the cost plus 10% valuation for goods sold to related persons, as per Rule 10. Participants advised keeping supporting documents ready for audit scrutiny. Additionally, the discussion touched on the requirement of a CAS-4 certificate, emphasizing its necessity when there is a change in cost structure, and clarified the valuation percentages for captive consumption. (AI Summary)
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