Sales from duty paid godown

[Former Member]

Dear Experts,

One of our plant is created as a duty paid godown. So what will be the excise procedure if i am selling to a customer from this plant.

Please guide.

Thanks & Regards

Girish

[Lakshmipathi]

This is nothing but Depot process.

From plant, while sending the goods to godown, you would be debiting some duty amount against an excise invoice.

So from duty paid godown, as and when the stocks are sold to customers, the corresponding excise invoice should be referred and duty should only be debited to that extent.

For example, today you despatch the material with 8% duty and due to budget, this has been changed to 10% at a later date. When you move the stock pertains to 8% duty excise invoice, you should charge only 8% and not 10% though the higher duty prevails on that day.

For more details, search the forum on Depot process.

thanks

G. Lakshmipathi