Excise set off

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2011 I have recently started a company dealing in industrial tools and components in Pune and have a VAT number. Some companies from whom I purchase material charge excise duty. As my company is not under excise, I can not avail the excise cerdit or charge excise to my customers.
What am I supposed to do in this case? Is it possible to register my company under central excise as I do not have a manufacturing unit. If yes. what is the criteria?

U S Sharma

U S Sharma (Expert)

24 May 2011 input credit of excise is available for manufacturer only,

if u register as dealer, then you can pass on the duty paid by manufacturer to your next manufacturer buyer, but you can not add / deduct any duty on it.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2011 Actually I design and manufacture the products, but since I do not have my own facility, I am offloading the manufacturing part. Does that make me a dealer from excise point of view?

U S Sharma

U S Sharma (Expert)

24 May 2011 to avail the input credit facility, you have to have excise registered factory, where excisable goods would be manufactured.

to pass on the excise you may get registered as dealer, but you would issue only cenvatable invoice to manufacturing dealers, you would get no benefit of it.

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