Just a moment...

Report
FeedbackReport
Bars
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 2685
- 0 -

Valuation of Sales Return

Date 24 Jan 2011
Replies3 Answers
Views 1320 Views
Asked By

Ours is a snacks co. The Sales returns is almost 4% of our sale. Our Price list for our products keeps on changing atleast once in a month. We receive sales returns from our distributors. We value our stocks approximately since we do not have any record on which price it is sold. Is it right. Is there any case law.

3 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on Jan 24, 2011
1.

Dear Mr John

For Sales Return, the detail guideline are given in Rul 16 of Cntral Excise Rules 2002.

1. You have to kept the Sale Return in separate identified are and after receipt you have to intimate to the Jurisdictional Excise Office.

2. You have to maintain separate Register ( Form V) for this. After receipt you have to account in this register. If the Officer doesnt inspect the sales return within 24 hr of the intimation, then the receipt goods may be transfered for reconditioning or similar activity.

3. If you have avail the Cenvat Credit on these goods, then at the time of removal the same amount of cenvat credit to be passed.

4. You may sold the goods at higher or lower price. If goods sold at higher price, pay the duty on the transaction value.

If the goods are sold at lower price, then pass the equivalent credit which was taken at the time of receipt.

 

- 0
Replied on Jan 24, 2011
2.

Sir thanks for you reply. but the goods received are not sold infact it is of no use ( Since it is snacks) so it is destroyed. We value the goods and deduct from the sales.

We also do not pay excise duty.

Please advice on this whether there is any issues in valuation of our Sales return.

Sales       XXXX

Less:

Sales return XX

Net Sale    XXXX

- 0
Replied on Jan 24, 2011
3.

Dear Mr John

In our view, since these sales return are not marketable, you may ask remission of Duty Paid u/r 21 of CCR 2002.

In case of replacement against these sales return, you have to pay the Duty as per the pervailing rate only the VAT/CST will not be applied since this is not the sale.

Payment of Excise Duty is mandatory at the time of removal.

 

 

Old Query - New Comments are closed.

Hide
Recent Issues