Hi All,
We are facing a challange and the below given is the summary of the same.
Our client does STO of Semi Finished Goods from one plant to another plant within the same company code. In a given financial year they have transferred materials more than 50 times. As per some guidelines of excise law they have used the Fair Market Value (FMV) as Assessable Value of the transferred goods for excise. Say the FMV of all the transfers during the year comes to Rs. 10,00,000.
After the financial year is over, they have got this Fair Market Value audited by a cost accountant. As per cost accountant's report the FMV of these transferred material comes to Rs. 13,00,000.
Now our client, for the sending plant, has to pay the excice duty on this incremental Assessable Value of Rs. 3,00,000. The amount so paid can be claimed as credit in the receiving plant.
Can you please let us know how to account for these two transactions in the sending plant and receiving plant..??
Also pl note that for these adjustment entries, there will be no movement of goods.. We need to account for only the excise duty on incremental FMV.
We tried with Proforma Invoice, even that also needs goods movement or service entry.
Regards,
Ravi Kumar