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Profit in Intracompany STO

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Former Member

‎11-22-2013 9:30 AM

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Dear all,

Is there any excise law in India wherein it ask to take an additional charge of 10% on material value and thereby calculate the Excise Duty for INTRACOMPANY STO?

Regards,

Lakhya

1 ACCEPTED SOLUTION

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Former Member

‎11-22-2013 9:48 AM

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Hi Baruah,

If you are using your products/spare parts for captive consumption like free replacement/warranty repairs then you have to certify you cost of production from an ICWA as per CAS-4 & add 10% notional profit for excise purpose to calculate assessable value.

Regards,

3 REPLIES 3

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Former Member

‎11-22-2013 9:48 AM

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Hi Baruah,

If you are using your products/spare parts for captive consumption like free replacement/warranty repairs then you have to certify you cost of production from an ICWA as per CAS-4 & add 10% notional profit for excise purpose to calculate assessable value.

Regards,

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Former Member
In response to Former Member

‎11-22-2013 10:04 AM

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So it means there is no such criteria during transfer of my material (Raw/SFG) to other Plant.

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Former Member
In response to Former Member

‎11-22-2013 10:24 AM

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Hi,

For RM there should not be question of profit, ED you availed credit need to be debited while sending goods to other plant (receiving plant can avail it back).

For SFG, if you had done even 1 paisa value addition over material then it attracts excise duty.

Regards,