TaxTMI 
TaxTMI 
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..?
Excise duty and CST calculation
14 Dec 2011 
7 Replies 
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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. (AI Summary)
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. (AI Summary)