Is excise duty applicable on the retail traders.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2016 My organization is in retail trade business. Goods both imported and local are being purchased in bulk and stocked in the warehouse. These products are later sorted, barcoded and labelled displaying the price at which the company wants to sell them, company address and contact numbers. There is no change/ transformation in the product. At times these are also repackaged wherein two or more products are sold by the company under some promotional schemes to the customers through its retail outlets. The products bear the company price tag along-with the MRP. The MRP is permitted to be displayed as it is without any change. This is done to make the consumers aware abou the savings they gain by shopping with us. Very recently our internal auditors have asked us to get retgisteration under the Central Excise Act and start paying for the excise duty on account of being covered under the realms of being a Deemed Manufacturer under Section 2(f) of Central Excise Act, 1944.
Through this medium, I would like to get an expert advise from our esteem expert members over the applicability of excise on the the retail trade opeartions of my company.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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02 April 2016 If your product will fall under the deemed manufacturing definition then you need to pay excise duty on that product. You need to consult with any professional for proper classified your product.

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