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..?

[YAGAY and SUN]

You would have to pay Central Excise Duty on 110% value of the goods intended for transfer to your sister concern for further manufacturing purpose.  Further, no CST would be payable in case of transferring of goods against CST Form 'F'.

[Mridul Sethi]

Sir,

Pls give the reference in this regards.  Also pls clear that in case of sister concern by other name, can we have to pay CST.

[Defy Jose]

sister concern i meant that, same owner but different names thats all.

[NEERAJ KUMAR, RANCHI]

Yes, You are required to pay c. excise duty at the 110% of the value.

[Defy Jose]

dear sir

can u describe the divisions of 110 %

[r.rajkumar kumar]

if this is sister concern a separate company than your have to charge cst or vat. if  you are transfering as it condition you have to daebit the input tax taken ie. if any input credit taken by you while purchaing

if it is finished goods. your have to chasge cst with sales tax. cst agaisnt c form .2% or cst as per the lcoal vat rate or10% whever is higher.

Dear sir 

 pay Central Excise Duty on 110%

AI Summary

Excise duty on inter-company transfers for further manufacturing remains payable; CST may be avoided by producing Form F.
Transfers of goods to a related undertaking for further manufacture attract central excise duty calculated on an enhanced valuation rather than invoice value, applying a prescribed uplift to determine assessable value. CST liability depends on the transferee's legal identity and documentation: movement against CST Form F can avoid CST, whereas transfers to a separately constituted company generally attract CST/VAT at the applicable local rate. Input tax credit adjustments on prior purchases must be accounted for in determining the net tax effect.