Should Excise duty need to debit if we use some Raw material and FG for R & D.

[Guest]

Dear Sir,

We are a manufacturer if we use the material for R & D or QC lab for testing purpose and this material for usable and scrap it. In that case should we need to Debit the Excise Duty on these material or not ?

Regards

Swapneswar Muduli

[JSW CEMENTLIMITED]

If excisable goods are used in house for R&D purpose, then Excise duty will be payable but for QC Lab testing being a part of manufacture, excise duty need not be reversed.

[ASHOK AMIN]

Dear Expert,

How to prepare invoice for in house debit ?

Regards,

[JSW CEMENTLIMITED]

You can create invoice in your plants name itself.

AI Summary

Excise duty payable on in house R&D use; QC testing integral to manufacture does not require duty reversal. Use of excisable goods for in house research and development triggers excise duty liability, whereas materials used for quality control testing incidental to manufacture do not require reversal of duty; internal debits can be recorded by invoicing in the plant's name.