clarification of accounting for ct-1 sales, Central Excise

[manan pandya]

dear experts,

we are manufacturer and also exports the goods, apart from we are selling the goods to the merchant exporters under CT-1 sales now query comes under accounting treatment..

1) if i sales to our merchant exporter against taking CT-1 in this case we (manufacturer) filed ER-1 and shows under Export CT-1 clearance but how to treat this sales under accounting ...this sales will be treated under export sales or domestic sales or deemed export ....?

2) same reverse case merchant exporter procuring the goods against CT-1 from manufacturer and same goods export so this sales will be treated under which head?

pls. clarify this issue .....

regards,

Manan PANDYA

Cell : 9510018659

Posts / Replies

[Naveed S]

The answer to both your above queries is that such sales shall be treated as export sales.

[manan pandya]

sir,

export sales for manufacturer as well as merchant exporter both party will show their sales in balance sheet under export sales group?

but foreign currency will be received by merchant exporter then ?

still i am getting confusion...

pls. clarify sir..

regards,

Manan Pandya

[Pradeep Khatri]

Dear Manan,

For Manufacturer exporter it is sales during the exports and for Merchant exporter it is export sales. Proof of export would be submitted by the Merchant Exporter. Manufacturer exporter would be benefited for not charging the C.E. Duties as well as non charging of VAT/CST on the strength of form H. Where as Merchant exporter can get the benefits of export promotions schemes on the submission of NOC from Manufacturer Exporter to Merchant Exporter. For Both the parties it is Deemed Export and Export.

Regards,

Sameer Malhotra - Consultant

YAGAY and SUN - Management, Business and Indirect Tax Consultants

[Naveed S]

Sir,

thanks for the reply. hope the query is resolved