Set up of a trading unit
This query is : Resolved
neha mathukiya
(Querist)
30 December 2014
Dear Sir,
I have a manufacturing Unit A to which all the laws releating to Excise Service tax Customs are applicable. Because of such heavy burden of tax in order to survive I decide to to form a trading unit B which is sister concern of Unit A. Unit A will sell excisable goods to Unit B & thenafter Unit B will sell this goods to other retailors & wholsellers. Does it create any problem in Excise . Pls advice me .
Thanks
Neha
I have a manufacturing Unit A to which all the laws releating to Excise Service tax Customs are applicable. Because of such heavy burden of tax in order to survive I decide to to form a trading unit B which is sister concern of Unit A. Unit A will sell excisable goods to Unit B & thenafter Unit B will sell this goods to other retailors & wholsellers. Does it create any problem in Excise . Pls advice me .
Thanks
Neha
Arun Kumar Singh
(Expert)
30 December 2014
You can setup a trading unit of sister concern unit but cenvat credit of input and input services will not be applicable for trading activity. You should consult with any professional for this activity.
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