Clarification required on Central Excise Registration and CENVAT

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Deepak

Manager

26 Points Joined February 2011

We are in the business of importing printers and its consumables and selling them across India with a turnover of around60 crores a year. While importing, we pay the Basic Customs Duty, Counter Vailing Duty (CVD), Cess and Special Additional Duty.

As there is no manufacturing activity involved, we are not registered with Central Excise. However, we are registered with Service Tax and Sales Tax.

Most of our customers do not require a CENVAT invoice to claim the credit for CVD. However, a few of our customers have started requesting a CENVAT invoice so that they avail the CVD credit.

The clarifications we need are as follows :

a) We suppose we will have to register as a Dealer so as to raise invoices from which our customers can avail the credit. Is this correct?

b) As we have godowns across India, can we just register any of these godowns for this purpose or do we need to register all the godowns under Central Excise.

c) What would be the records to be maintained on registration

d) On registration, can we issue CENVAT invoices for the goods already lying in stock or only for goods received after registration

e) Can we maintain excise records only for a part of the records received in the godown for which we want to raise CENVAT invoice? For eg : We import 15 printers and we would like to raise CENVAT invoice only for 3 printers. Can we maintain the required Excise records for only the 3 printers or do we have to maintain the records for all 15 printers.

Look forward to your reples

Thanks and Regards

Deepak

Replies (7)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

Originally posted by : Deepak

Hi
We are in the business of importing printers and its consumables and selling them across India with a turnover of around60 crores a year. While importing, we pay the Basic Customs Duty, Counter Vailing Duty (CVD), Cess and Special Additional Duty.
As there is no manufacturing activity involved, we are not registered with Central Excise. However, we are registered with Service Tax and Sales Tax.
Most of our customers do not require a CENVAT invoice to claim the credit for CVD. However, a few of our customers have started requesting a CENVAT invoice so that they avail the CVD credit.
The clarifications we need are as follows :
a) We suppose we will have to register as a Dealer so as to raise invoices from which our customers can avail the credit. Is this correct?

- You have to get registered under Excise as "importing dealer" then you would be eligible to pass on the CVD+EC+S&HSEC to next "manufacturing buyer"

b) As we have godowns across India, can we just register any of these godowns for this purpose or do we need to register all the godowns under Central Excise.

- every godown from where the excisable goods will get cleared under dealer's invoice has to get registered, and file quarterly return.

c) What would be the records to be maintained on registration

- Dealer's invoice, RG23D( stock book)

d) On registration, can we issue CENVAT invoices for the goods already lying in stock or only for goods received after registration

- as the registration number would get put on import bills, so the past bills would not qualify for pass on duty.

- As the stock register is maintained "inward bill wise" there is no bar to issue lesser number of cenvatable invoices, but the goods sold without excise bills would get exit on their actual movement out from godown, in RG23D

Look forward to your reples

.
Thanks and Regards
Deepak

Deepak

Manager

26 Points Joined February 2011

Hello Sharmaji

Thanks for your replies.... A few more questions arising out of your replies are as follows :

a) You have said that all godowns from where we clear the excisable goods have to be registered. Suppose we have 3 godowns and we will ensure that we clear the excisable goods only from 1 godown, then is it enough if we register only 1 godown under Excise?

b) With regard to your reply for question (e), we have to maintain the records for all goods stored in the godown, am i correct?

Thanks in advance

Deepak

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

Excuse dealer registration is required for that place only from where you need to issue cenvatable invoice, if you intend to use one godown only, then u have to import the goods to that godown specific for cenvat purpose.

say you have got 10 printers under an invoice, and issued 4 printers with cenvat invoice, and sold 6 without cenvat invoice,

your return will carry 4 printers invoice details with input 10 printers, there is no bar to sell goods without cenvat invoice, the system is adopted not to issue excess invoice over the purchase.

Deepak

Manager

26 Points Joined February 2011

Thanks Sharmaji

Though my return carries only 4 printers as they are with cenvat invoice, do i still have to maintain excise records (RG23D) for the 10 printers or is it enough if i maintain the excise records (RG23D) for the 4 printers alone.

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

at the time of receipt, 10 printers are in single invoice, so the RG23D contains 10 printers, unless these printers are cleared in total remaining balance is there,

in returns you have to maintain the excise invoice issued only, but cross reference is inward invoice, where 10 printers are there,

say you got 10 printers and 4 gone out with excise invoice, 2 gone without excise, remaining 4 are still in hand, and in next period somebody asked you with excise invoice, under this circumstance, how you will deal it?

hope you have got the picture clear with RG23D entries.

Ankur

manager

30 Points Joined June 2011

i am importer of inks and my customer does not want cenvat. i am not registered with excise. i still dont want to pass cenvat to customer as i dont have customer who wants cenvat. please confirm still i have to register for excise.

Jasmine Thakkar

asst manager

27 Points Joined April 2013

We are traders and also importing goods. We are already registered as dealer in excise now should we have to register again,If yes Please let me know the procedure.

Thanks in advance