Tax liability of a dealer

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Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Dear Friends,

I am very confused about the calculation of tax liability of a dealer under central excise: -

Example

if a dealer purchases goods from manufacturer Rs. 1000
Add; excise duty x
add; VAT y
-----
Total purchasing amount
--------

My question is that-

Now when he sales above goods then
can he charge excise duty from purchaser?

Annu Agarwal

Annu Agarwal (Expert)

21 November 2013 A dealer can never charge excise duty as he is not the manufacturer.
He passes on the excise duty to the seller.When a dealer makes a sale,he only charges vat/cst whatever applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Dear Annu agarwal

Thanks for valuable solution of my problem

Annu Agarwal

Annu Agarwal (Expert)

21 November 2013 For your refernce please check the example below:

When you PURCHASE from manufacturer

basic pricexunit(100*10)=1000
add:excise duty=123.6
add:vat5%on 1123.6=56.18
Total =1179.78 or 1180

Now when you SALE
Basic price would be(1000+123.6)/10=112.36
assumuning you sale the same quantity that is 10 units.You may add your profit % to basic price to be recovered from customer.say now your selling price is 113.36

selling pricexunit(113.36*10)=1133.6
add:vat5% =56.68
Total =1190.28

details of duty passed on
excise duty 120
edu cess 2.4
hsec 1.2
total duty 123.6

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Annu ji

another question is that what type of documents are required to maintain for a reg. dealer and name of documents

Annu Agarwal

Annu Agarwal (Expert)

21 November 2013 a Registered dealer has to maintain bills books as per Excise laws.RG registers and a stock register.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Dear Annu

thanks for all

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