First stage dealer / second stage dealer sales
This query is : Resolved
CA SANKET GARG
(Querist)
30 July 2016
Hi Friends
I have a query related to First/Second Stage Dealer as below.
As per Central Excise Act, Rules and Procedures, is there any limit/cap on issue of Invoices by a Second Stage Dealer to another Second Stage Dealer. For Example A is the importer and sell goods to B ''a First Stage Dealer'' he further sell to C ''a Second Stage Dealer'' now if C further want to Sell the goods to a person who is also a dealer either First Stage or Second Stage can it be possible and upto what extent this can be possible means D further sell to E and F and so on. Assuming all the Dealers are Registered in Central Excise Act as First/Second Stage Dealer and also registered in VAT/CST Act.
Since there is no specific rules, law etc mentioned in Central Excise Act that what is the limit/cap on issue of invoice.
As per my understanding the above transaction can be done enormous number of times by charging VAT/CST on the Goods Value + Profit Margin and CVD & SAD can be passed on to the manufacturer/ultimate user at the end.
Pls guide me on the above mentioned query. Many thanks in advance.
I have a query related to First/Second Stage Dealer as below.
As per Central Excise Act, Rules and Procedures, is there any limit/cap on issue of Invoices by a Second Stage Dealer to another Second Stage Dealer. For Example A is the importer and sell goods to B ''a First Stage Dealer'' he further sell to C ''a Second Stage Dealer'' now if C further want to Sell the goods to a person who is also a dealer either First Stage or Second Stage can it be possible and upto what extent this can be possible means D further sell to E and F and so on. Assuming all the Dealers are Registered in Central Excise Act as First/Second Stage Dealer and also registered in VAT/CST Act.
Since there is no specific rules, law etc mentioned in Central Excise Act that what is the limit/cap on issue of invoice.
As per my understanding the above transaction can be done enormous number of times by charging VAT/CST on the Goods Value + Profit Margin and CVD & SAD can be passed on to the manufacturer/ultimate user at the end.
Pls guide me on the above mentioned query. Many thanks in advance.
Arun Kumar Singh
(Expert)
04 August 2016
After second stage dealer duty cannot be transfered to another dealer.
CA SANKET GARG
(Querist)
08 August 2016
Thanks Arun Kumar Singh Ji.
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