1st stage dealer and its accounting

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monish (Querist)
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30 November 2009 I want to know abt how the credit of excise is taken in case of a 1st stage dealer, its accounting during the year as well as on the balance sheet date.
n 1st of all i wud also like to knw wat exactly is 1st stage dealer.
kindly share some knowledge on this topic.
thanking you.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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01 December 2009 manufacturer or depot of manufacturer/ importer could be said to be 1st stage dealers. Dealer who buy from such dealers would be said to be 2nd Stage.
Dealers do not avil the credit only enable passing on. Therefore in my view no accounting entry is required for dealers passing on the credit.

Rahul Vora

Rahul Vora (Expert)
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01 December 2009 1st stage dealer can be an importer/manufacturer or a person who purchases from an importer or manufacturer. 2nd stage dealer is the one who purchases from such 1st stage dealer.
Credit for excise is to be taken for passing on the CENVAT to the purchaser. One can keep the record of such CENVAT in RG23D Register.
As this credit is only available to passing on to the purchaser, there will be no effect on accounting and balance sheet.

monish

monish (Querist)
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01 December 2009

monish

monish (Querist)
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01 December 2009 Can the consumer of goods who is eligible for excise credit, avail the credit as on the bill date or the credit is available in parts.If credit is available in parts then wat wud be the accounting entry as on balance sheet date.?
Is excise calculation not based on lines of value addition to goods sold?

Vishnu Saboo

Vishnu Saboo (Expert)
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02 December 2009 Consumer of goods who is eligible for credit and who is consuming the goods in manufacturing, can avail the credit on as soon as material is received to him.
as far as concern the accounting entry, capital goods should be taken in 2 parts and input goods in first year.

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