First stage Dealer

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2011 We are Dealers in Jute Hessian cloth. We have recenlty come across a notification which says that shortly Excise duty shall be levied on the cloth.We purchase the cloth from a manufacturer and then after some processing done to it we supply it to our customer. So, we are first Stage Dealers. Now, the Questions that arise are as follows:

The premises where processing is done is not registered with Sales Tax (VAT & CST) or Income Tax Department. Other premises is registered as our Office. So how is that going to impact? Further, for exice registration shall we need to register the premises where processing is done?
How are we required to issue the Cenvatable Invoice? What are the disclosures required to be made? Is the manufacturer details required to be disclosed?
On the invoice as we need to mention the amount of Excise Duty @ 10% our customer can very well make the back calculation and know our Purchase price. This will lead to disclosure of our margin to the customer. So, what can be done to avoid this disclosure?
Kindly advise me on above queries. Thanking you in Advance.

U S Sharma

U S Sharma (Expert)

15 May 2011 if your activity involve any process towards the materials purchased, then you are manufacturer under excise act.

however if you are merely buying the goods and selling it to diff parties then you have to enroll yourself under excise as dealer.

in excise dealership everything is open to buyer, they know the actual price at factory gate also.

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