branch transfer

[sankar s]

Kindly clarify my understanding is correct for branch transfer from manufacturing plant to trading location in another state

1. In case of manufactured parts transferred to our location in other state : Excise is to be charged and if parts are sold to customer (manufacturer) then same Cevat can be passed on to customer

2. In case of local bought out parts transferred to our location in other state: The cenvat credit taken is to be reversed. Excise is to be charged and same can be passed on to customer when sold.or cost+ 10% with excise

3. In case of imported parts transferred to our location in other state: CVD & AED credit taken is to be reversed. Excise to be charged and same can be passed on to customer when sold or cost+ 10% with excise

AI Summary

Clarification Sought on Excise Duties and Cenvat Credit for Branch Transfers of Manufactured and Imported Parts A discussion on a forum addresses the process of branch transfers involving manufactured, locally purchased, and imported parts between states, focusing on excise duties and Cenvat credit. The initial query seeks clarification on excise charges and credit reversals during such transfers. Respondents provide insights, emphasizing that only registered dealers can pass on credit and that credit reversal implies no credit taken. They also discuss billing complexities and suggest using the same invoice book for transferring goods, referencing purchase and import documents to indicate duty payment. The conversation highlights the intricacies of excise duty management in inter-state transfers.