Hiral Mehta (Job) (118 Points)
09 January 2017Hi,
I have business of Sctock & sale. I import goods & sale them in inda so i have my excise registration as Importer. Bu i also have registration as dealer. So can i locally purchase via MODVAT invoice? & what will be the consequences..? like if i purchase the product as Modvat invoice than can i take credit of excise & additional duty? & than when i sell from this lot than how will be the flow of transaction. will i have to pay any excise & than claim the input credit?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 09 January 2017
As I understand, if you are registered as a I stage (or II stage) dealer, then you may issue cenvatable invoice to pass on the excise duty credit to your buyers, who in turn can claim input credit of the same. That means, when you resell to your buyers, you don't have to separately charge excise duty instead proprotionate credit of duty can be passed on to the buyers.
Nagendra Hegde
(Chartered Accountant)
(1948 Points)
Replied 09 January 2017
The registrered dealers under Central Excise can merely pass on the Cenvat credit to their buyers through a dealer invoice. They can neither avail the credit nor charge excise duty unlike manufacturers.
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