Procedure - taking godown - billing system, Central Excise

[CA. B.K.BANSAL]

DEAR ALL, A MANFACUTIRNG COMPANY PRODUCING EXCISABLE PRODUCTS, WANT TO TAKE A GODOWN IN SAME CITY FOR DISPATCH FINISHED GOODS TO PARTY FROM THERE. WHAT ARE THE PROCEDURE FOR TAKEN THIS GODOWN? WHETHER BILLING IS TO MADE FROM GODOWN TO PARTY OR DIRECTLY FROM COMPANY? PLEASE FEEDBACK THE QUERY. THANKS & REGARDS CA. B.K.BANSAL

Posts / Replies

[Rama Krishana]

You can sale the goods through godown (Depot). There is no restriction in this respect. The provisions of Central Excise Valuation Rules would be applicable in this case i.e Invoice shall be made from factory to depot at the sale price of that goods from the depot. If the manufacture wants to issue an excise invoice from the depot to enable the buyers to claim cenvat credit, depot is required to obtain central excise registration in the capacity of Depot / Branch / Godown of the manufacturer.