Excise duty
This query is : Resolved
25 June 2015
We are manufactured of automotive part and purchase different-2 part from our vendors.
Some time we sale the material to Manufacturer on same price and same duty for making the part and we are not charging any extra cost from manufacture.
After completing the process manufacturer send the part to us and after that we pack the material and sale.
Manufacturer make an invoice and charge process cost and excise duty.
Query:
1. Please tell me on above process any duty evasion or not.
2. If any duty evasion then tell suitable process.
3. Manufacturer send scrap on above process with charge excise duty, can we take credit this scrap or not.
Some time we sale the material to Manufacturer on same price and same duty for making the part and we are not charging any extra cost from manufacture.
After completing the process manufacturer send the part to us and after that we pack the material and sale.
Manufacturer make an invoice and charge process cost and excise duty.
Query:
1. Please tell me on above process any duty evasion or not.
2. If any duty evasion then tell suitable process.
3. Manufacturer send scrap on above process with charge excise duty, can we take credit this scrap or not.
Arun Kumar Singh
(Expert)
06 July 2015
The problem can be create, value addition should be must and profit should be minimum 10%. If scrap is used for reprocessing then you can take the credit.
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