Forms and Accoutability of Free issue/ unpacked value clerance-reg, VAT + CST

[ravikumar venkatraman]

Dear  Experts/ Members,

I am working in a EPC company and we face the below mentioned situations due to contractual requirements.

Kindly clarify.

Let  Say A, B, C are independent business entities.

B has got an EPC contract  from X. for  100 L

B has ordered some parts with A for manufacturing INR. 20L and asking A to dispatch C.

B  pays A and issues ‘C-Form  to  A and Got E-1 Form for his transaction of  20L.

B  has ordered another part with C for manufacturing of INR. 25L.

C Manufactureres his part and as per instruction of A assessmbles  parts from ‘A’Also.

C avails Cenvat portion of goods received from A and credits in B’s account by a credit note.

C raises the bill of 20L+25 L( his mfg value+ goods from A value) to X as per instruction of the B to comply with valuation rule of Central Excise.

C issues another credit note for material received say 20 L+ SalesTax.

 

C receiving a payment from B after adjustment of credits notes given to B to the value of his bill for this transaction.

 

Please clarify:

How much value B should issue C- Form to C?

How purchase from A should be adjusted in the purchase account?

How purchases from C should be treated in accounting?.

How much purchase should be shown in books of accounts?

 Thank you

 

Ravikumar

+91-94861 80815.

 

Posts / Replies

[Pradeep Khatri]

Though I am trying to find answer for your query. Please make your query bit simpler, if possible for you.