Procedure - return of stock

[Guest]

WE purchased raw materials in April`08 and availed excise cenvat credit & VAT.Due to closing of that particular business, we decided to return the entire stock of Raw materials to supplier.Can you enlighten what the procedure to adopt under Excise and VAT.

[Madhukar N Hiregange]

Under central excise reverse the duty credits availed and bill back to the supplier after establishing under which invoice it came. The consideration maybe different but excise would be the same. Under VAT since the credit is available on the same price back to the supplier charge the VAT.

AI Summary

Business Closing: Reverse Excise Duty Credits and Charge VAT Back When Returning Stock to Supplier A business that purchased raw materials in April 2008 and claimed excise CENVAT credit and VAT is closing and plans to return the stock to the supplier. The procedure involves reversing the excise duty credits and billing the supplier using the original invoice details, with the excise remaining unchanged. For VAT, since the credit is available, the VAT should be charged back to the supplier at the same price.