Inter unit matl movement - BED pmt reg

[venkat eswaran]

Dear All,

We are 2 mfg unit, clearance is MRP based product. one is main and another is branch. All goods are sold to customer from main unit only. Goods manufactured in branch coming to the main unit as finished and semi-finished and sold to customers from main unit only.

While removing goods from branch to main unit we are paying duty on MRP rate finished goods.? Is it ok? Or we need to pay 110% cost of goods for all items? MRP based duty is only for customers?

Is there any provision without pmt duty for inter unit transactions?

Pl provide ur valuable replies

Thanks in advance

Venkat

AI Summary

Inter-unit movement valuation: finished goods taxed on MRP while goods for further processing require cost-based valuation.
Inter-unit transfers of excisable goods require duty payment based on how the goods are valued and whether they are finished. Finished goods bearing MRP at the branch are taxable on value determined under Section 4A (MRP-based valuation) prevailing at the main unit on clearance. Goods sent for further processing and packing at the main unit must be cleared under Rule 8 on a cost-based valuation supported by a Cost Accountant certificate. No general exemption exists for inter-unit clearances except by government notification or where export bonds/letters of undertaking apply.