Excise Procedure for Billing

[dheerendra lohani]

Dear Sir's,

Please advice me if We have two plants in 10 KM Distance and we are manufacturing some goods in one plant then can we do the billing from second plant to customer by transferring goods from first plant to second plant on STO bases and then bill to customers.

If No what is the procedure like packaging and testing or we should bill from the same plant where the manufacturing activity is running .

[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.

[dheerendra lohani]

Thanku Sir,

In such a case do we need to do any value addition in second plant or directly we can bill to customer after receiving goods from first plant.

Kindly suggest.

[Ganeshan Kalyani]

Not necessary to add value. You can sale as it is. Thanks.

AI Summary

Stock transfer invoice permits billing from a second plant; excise duty payable on removal and inter state form may be required. A stock transfer invoice may be issued when goods are moved from the manufacturing plant to a second plant, after which the second plant may raise the sale invoice to the customer; excise duty must be paid on removal from the first plant and inter-state transfers may require the purchaser's concessional form, while intra-state transfers do not.