Excise for Scrap sale

[Former Member]

Dear All,

We have a scenario, where our finished goods are non excisable where as the raw / waste produced during the finished product manufacturing is excisable. I need to know how i go about the simulation at the month end. We have done all config related to excise and excise invoice is getting generated. There is no RG23A/C do i need to enter in PLA? Please guide.

Thanks

Ashwini

[Lakshmipathi · Accepted solution]

Ideally, you should have raised this query with your client Finance Team who should have given you the required direction.

From my point of view, any scrap sales attracts both excise duty and TCS.  Having said this, in your case also, you should consider duty portion to the extent of scrap sale value.  As for as wastage of components, the plant has to store it somewhere in a separate storage location, weight it and sell it as a scrap sales.  Again the same rules applies.  Before you freeze this, better have a final confirmation from the Finance Team of your client who are suppose to well verse with excise procedures

G. Lakshmipathi

[Former Member · Accepted solution]

thank you sir for your valuable reply. even i discuss with my finance team too. and will have to pass JV and create balance in PLA and then have to simulate the entries through J2iun every month.

Thanks

Ashwini