Excise Procedure for Billing

[dheerendra lohani]

Dear Sir's,

Can any one advice me the complete procedure me if we have two manufacturing plant near by location and We are manufacturing finished product in one plant which need to be billed from another plant as there is some vendor code creation issue at customer end. What the procedure we need to adopt like setting up testing and packaging Lines or We need to implement some System changes also in our SAP.

Please guide.

[DR.MARIAPPAN GOVINDARAJAN]

Your SAP consultant will give solution to this after studying the entire issue.

[Surender Gupta]

I do not think that mere difficulty in the SAP would permit you to supply goods from one factory premises and issue invoice from another factory premises. It will be illegal and impermissible unless and until both the units are one.

[Ganeshan Kalyani]

First of all whether the Central Excise registration is same for both the factory. Obviously it will not because it is nearby places but not adjacent to each other. Hence the compliance of two separately registered factory need to done separately.

Regarding SAP, you will have Profit Centre facility in SAP which would differential between the factory. And a whole the GL would be same for sale but profit centre would separate it.

Both the aspect need to be studied. Thanks

[dheerendra lohani]

Dear Sir,

Thaku very much for your valuable reply however my first question is this can we do the billing from the plant where the goods were being transferred from another plants on Stock transfer invoice. Both the Plant are in 10 Km distances. If We can not transferred the good then is there any procedure by doing some value addition ?

[Ganeshan Kalyani]

In my view, you can stock transfer from plant one to plant two based on stock transfer invoice. Further sale of those goods from plant two to customer can be done raising sale invoice. It is allowed. If the plant is situated in same state then no form f is required otherwise yes. Needless to say while removing goods from plant one applicable excise duty need to be discharged. Thanks.

AI Summary

Stock transfer compliance: billing from receiving plant permitted after transfer and excise duty discharge; interstate movement requires Form F. Billing from a different plant requires compliance with excise obligations: separate factory premises normally need separate excise registrations; goods must have excise duty discharged when removed from the manufacturing plant. The permitted practice is to effect an interplant stock transfer by stock transfer invoice, discharge duty on removal, and then raise the sale invoice from the receiving plant. Interstate movement requires Form F or equivalent; same-state transfers may not.