TMI BlogExcise records to be maintained when finished goods sold to related persons.X X X X Extracts X X X X X X X X Extracts X X X X ..... We are selling our finished goods to related persons as well as to non-related persons. The value of goods sold to related persons determined as per Rule 10 of the valuation rules i.e. excise duty would be payable on 110% of cost of production of such goods. Notification No. 14/2013 - CE (N.T.) dated November 22, 2013 with effect from 01.12.2013 onwards. Kindly give your valuable guidance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for keeping Excise record to avoid any litigation to satisfy the Excise auditors during the audit of our unit. Regards, VINAY - Reply By Ganeshan Kalyani - The Reply = Sir the working of cost plus ten percent for removal of goods to related is required to get certified from Cost Accountant. Thus, in my view the said certificate should suffice the audit requirement for such transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thanks. - Reply By KASTURI SETHI - The Reply = Sh. Vinay Wakde Ji, I endorse the views of Sh.Ganeshan Kalyani, Sir. Further the Audit Officers would examine the accuracy of certificate to be issued by the Cost Accountant.Certificate is more than sufficient but the Officers can go to any extent. They may check the basis of the certificate i.e those docs on the basis of wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich Cost Accountant would issue certificate. So keep those records ready. It is pertinent to advise that all the relevant records asked for by the Cost Accountant must be produced before him. Nothing should be skipped. - Reply By surya narayana - The Reply = Dear Wakde, I am afraid you might be clearing the goods to your related parties/other units of your company under Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 8 read with Rule 11 for which value of 110% based on CAS4 certificate is prescribed. Even under Rule 10 also if 110% is prescribed , then the views expressed by our friends are correct and not require any further inputs. Best Regards Suryanarayana - Reply By vinay wakde - The Reply = Kindly give us proforma of CAS-4 certificate. Kindly inform us whether we have to obtain C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AS-4 certificate on quarterly basis to avoid any interest or after completion of financial year/finalization of accounts. Regards, VINAY - Reply By Ganeshan Kalyani - The Reply = Sir anyway you will have to appoint Cost Accountant, who will fulfill all the requirement as per cost accounting standards. Thus our intervention is not required. Hope you got my point. Even then if you need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it we will make available for you. Thanks. - Reply By KASTURI SETHI - The Reply = CAS-4 Certificate has to be obtained whenever there is a change in the cost structure of the product. Prescribed Pro forma is available on the internet. However, final solution is with Cost Accountant as rightly advised by Sh.Ganeshan Kalyani, Sir. - Reply By vinay wakde - The Reply = As per Circular No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 975/9/2013-CX dated 25.11.2013 , the valuation to be done ( as per rule 8 of the Valuation Rules i.e. the assessable value will be 115% of the cost of production of the goods) in cases of captive consumption (i.e. consumed within the same factory) including transfer to a sister unit or another factory of the same company/firm for further use in the manufacture of goods. Kindly go through t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same and confirm whether Assessable value will be @ 110% or @115%. - Excise records to be maintained when finished goods sold to related persons. - Query Started By: - vinay wakde Dated:- 13-4-2016 Central Excise - Got 7 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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