Excise

Save Share

This query is : Resolved

sudarshan reddy k (Querist)

01 June 2012 is it possible for the traders who are not entitled to pay exise duty to collect excise duty(input) from customers????

for ex:
X(manufacturer) sold goods to Y for 100+12.3(excise duty)=112.3 (say)
again Y(not a manufacturer) sold goods to customers for 100+30(profit)+12.3(excise duty)which was collected previously by x+5(vat)??
y registered for excise duty

Dayal

Dayal (Expert)

02 June 2012 As a trader the price to end customer is your landed cost plus your margin. So your purchase price assuming you as y is 112.30 and your sale price to customer would be 142.3 plus applicable vat or cat. As a trader you cannot collect excise separately. If you want to pass on the benefit of excise to your customer then you will need to register as a dealer under central excise

Message likes : 1 times

NILESHKUMAR

NILESHKUMAR (Expert)

02 June 2012 Its not possible. You have to consider all expenses towards duties and taxes into your landed cost inclusive profit margin.

for passing on Cenvat Credit you should be having Registration of 1st/2ns Stage Dealer under Rules 9 of CER 2002.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now