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Cenvat credit

205 views 4 replies

Vamshi Kanamarlapudi

Article Assistant at Raju and Prasad Cha

52 Points Joined July 2013

Hey, let us say for example we have 3 people in the market i.e., a Manufacturer (A), a Dealer (B) and another Manufacturer (C). Now here, A and C are chargeable under Excise and B is not. Now the question is what if A sells goods to B and B further supplies the same to C after further process, will C can avail Cenvat credit from A's Invoice i.e., if it is furnished by B to C. Thank you for your replies.

Replies (4)

shubham Pahuja

Chartered Accountant

236 Points Joined January 2014

if B sale to c in its own name as seller then C will not get credit benefits but, on bill seller was A then yes C can take benefits

Vamshi Kanamarlapudi

Article Assistant at Raju and Prasad Cha

52 Points Joined July 2013

Thanks Shubham :)

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

The bill to ship to model would ensure that C can get the credit. A can bill to B but ship the goods under CE to C. B can then raise a commercial invoice on C. C would then get credit.

Alternative is that B canbe registered as a 1st stage dealer under central excise and issue excisable invoices on whcih C can avil the credit.