Transfer the excise dity to duyer.

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This query is : Resolved

p.prabhakaran (Querist)

09 January 2012 dear sir,

i have query that is my supplier transfer the excise duty to me for his same duty.that mean
x company sell a product to y that bill is 10000 basic, 1000 excise. y sell a that product to z.bill is 15000 basic, but 1000 is excise.this is right. i am blind about this.i ask him they said we transfer the duty same to you.what i want to do.

Maninder Jain

Maninder Jain (Expert)

10 January 2012 First of all you must know that Excise duty is on manufacturing activity. Thus only a manufacturer should pay duty & can collect this duty from his buyer. However if a manufacturer sell goods to a trader & then trader sell the goods to consumer, the consumer (if he needs) will not be able to take cenvat credit on trader invoice.
To remove this hardship Excise law permit registration of First stage Dealers (FSD) & second stage dealer (SSD). Here even a trader can register in Excise department & charge the same excise duty as he has paid to the manufacturer.
A trader who buy from manufacturer is FSD & trader who buys from FSD is SSD.

Vipin Kumar

Vipin Kumar (Expert)

10 January 2012 Wow Maninder,

Really appreciating that you understood the issue.
I couldn't even understood a single sentence of it.

Vipin Gagneja
https://sites.google.com/site/vipingagneja

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