Excise on trading goods
This query is : Resolved
07 July 2013
Sir
We are a manufacturing unit with full ED @12.36% applicable. We would like to do some trading of goods related to our industry. We want to sell under same brand and remove the goods from the factory . do we have to pay excise duty. there is no manufacturing activity excepting putting our label.
Another query is can we start a trading co in a different premises and sell from there BUT UNDER SAME BRAND with out ED .
Thanks
V K Vijayaraghavan
FCA
We are a manufacturing unit with full ED @12.36% applicable. We would like to do some trading of goods related to our industry. We want to sell under same brand and remove the goods from the factory . do we have to pay excise duty. there is no manufacturing activity excepting putting our label.
Another query is can we start a trading co in a different premises and sell from there BUT UNDER SAME BRAND with out ED .
Thanks
V K Vijayaraghavan
FCA
08 July 2013
Depend upon your classification of the goods. If your products will not fall under the deemed manufacturing activity then no need to pay excise duty on traded goods. Excise duty will not be applicable on trading activity. If branding and relabeling amounts to manufacture then excise duty will be applicable.
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