Forms and Accoutability of Free issue/ unpacked value clerance-reg

[Guest]

Dear  Experts/ Members,

I am working in a EPC company and we face the below mentioned situations due to contractual requirements.

Kindly clarify.

Let  Say A, B, C are independent business entities.

B has got an EPC contract  from X. for  100 L

B has ordered some parts with A for manufacturing INR. 20L and asking A to dispatch C.

B  pays A and issues ‘C-Form  to  A and Got E-1 Form for his transaction of  20L.

B  has ordered another part with C for manufacturing of INR. 25L.

C Manufactureres his part and as per instruction of A assessmbles  parts from ‘A’Also.

C avails Cenvat portion of goods received from A and credits in B’s account by a credit note.

C raises the bill of 20L+25 L( his mfg value+ goods from A value) to X as per instruction of the B to comply with valuation rule of Central Excise.

C issues another credit note for material received say 20 L+ SalesTax.

 

C receiving a payment from B after adjustment of credits notes given to B to the value of his bill for this transaction.

 

Please clarify:

How much value B should issue C- Form to C?

How purchase from A should be adjusted in the purchase account?

How purchases from C should be treated in accounting?.

How much purchase should be shown in books of accounts?

 Thank you

 

Ravikumar

+91-94861 80815.

 

[YAGAY andSUN]

Though I am trying to find answer for your query. Please make your query bit simpler, if possible for you.

AI Summary

C-form issuance and Cenvat treatment where sequential manufacturers transact require valuation alignment and appropriate credit note adjustments. C-form issuance and tax valuation arise where A supplies parts to B (for dispatch to C), B issues a C-form to A and engages C to manufacture and assemble parts including A's goods; C invoices the buyer on B's instruction, issues credit notes reflecting Cenvatable inputs and materials from A, and receives payment after adjustments. Core queries are the appropriate value to state on the C-form to C, how purchases from A should be adjusted in accounting, how purchases from C should be treated, and how much purchase should be shown in B's books.