INTER UNIT SALE / STOCK TRANSFER

[SANJEEV JADHAV]

Recently we will start our second unit near to our existing factory. We are manufacting panels from our Unit I. Fabrication required for manufacture of panels will be get from our new Unit i.e. Form Unit II. We have taken excise registration for both units seperately. Old unit is as Unit I and new unit as Unit II. We required information for below points : 1. Can we send material i.e Plates from Unit I to Unit II for job work and get process the same from Unit II. 2. What precautions we have to consider while making job work ? 3. If we decide to take option to sale goods from Unit II to Unit I instead of job work, then what formalities we have to complete for the same to Excise. 4. If we decide to go with sale, then what will be the Sales tax for the same. Please clarify above points.

AI Summary

Company Expands with New Unit, Seeks Guidance on Inter-Unit Transactions and Compliance with Excise Rules 8 & 9. A company is expanding by starting a second manufacturing unit and seeks guidance on inter-unit transactions. They inquire about transferring materials from Unit I to Unit II for job work and the necessary precautions. They also consider selling goods between units instead of job work and request information on the formalities and applicable sales tax. The response advises compliance with Rule 8 and Rule 9 of the Central Excise Valuation Rules for sales between units and mentions that service tax may apply to job work if it does not result in manufacturing or if no duty is paid on final goods.