hello everyone
My question is
Mr A - manufacturer (raw material manufacturer) EXCISE registerd
Mr B - manufacturer ( end product) excise registered
Mr C - consumer (vat, CST registered)
Mr B, bought raw material x from Mr A with basic price of RS. 100 with excise duty of 12.5% and CST - 2 % ( 100 + 12.5 + 2.25) = RS 114.75
so cost price for Mr B became 114.5 inclusive all taxes, now if sale at rs 120 and he wants to take benefit of excise and CST
what is the process and what he needs to do
does he have to burden the taxes of CST and excise to consumer to avail the benefit of tax which he paid to Mr A manufacturing
thank you on advance
please help
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CENVAT plus vat
Replies (1)
Lets take the sale price of manufacturer B of rs. 120 as ex duty price that is exclusive of excise duty and CST
So manufacturer B will pay excise duty on rs 120 of rs 15 and cst of rs 2.7 so his actual sale price will be rs 137.7
Now he will claim cenvat credit of excise of rs 12.5 here and will liable to pay excise duty of only rs 2.5 (15-12.5)
Same benefit of cst credit will be there . actual burden passed on further is of rs 2.5 in case of excise duty.
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