Excise duty and CST calculation

[Defy Jose]

When my company ABC LTD has transferring goods for manufacturing purposes to my sister concern XYZ LTD (name has different) For this regard shall we need to pay or obtain excise duty or CST ? if it is needed, how will calculate..?

AI Summary

ABC LTD Must Pay Excise Duty on Goods Transfer to XYZ LTD; CST Not Required with Form 'F' Compliance. A company, ABC LTD, inquires about the necessity of paying excise duty or Central Sales Tax (CST) when transferring goods to its sister concern, XYZ LTD, for manufacturing purposes. Responses indicate that Central Excise Duty must be paid on 110% of the goods' value. No CST is required if goods are transferred against CST Form 'F'. Clarifications are sought on whether CST applies when sister concerns operate under different names. It is noted that if the sister concern is a separate entity, CST or VAT might be applicable, depending on the transaction's nature and applicable tax credits.