Godown sales

[Guest]

Hi everybody,

We are a manufacturer of synthetic filaments. All of our sales from factory gate with payment of appropriate duty. We would like to open a godown at Mumbai which is meant for retail sales. We will move the goods with payment of duty and taxes from our factory to the godown from where it will be sold to the customers. Value from the factory is approx Rs.100 per kg, duty also will be paid on this value. Value from Godown to customer will be Rs.150 per kg  + the local VAT and Octroi. Kindly let us know what is the procedure.

AI Summary

Manufacturer Seeks Guidance on Assessable Value for Goods Transferred to Depot Under Central Excise Act Rules A manufacturer of synthetic filaments seeks guidance on the procedures for opening a godown in Mumbai for retail sales, with goods moved from the factory with duty paid. The query involves determining the assessable value under the Central Excise Act when goods are transferred to a depot. The reply outlines rules for determining assessable value, including scenarios where goods are sold at different locations, stock transfers, sales through related persons, and captive consumption. It emphasizes the importance of determining the value based on transaction value at the time of removal and addresses various valuation scenarios under the Central Excise Valuation Rules.