HI EXPERTS,
WE ARE TRADERS IN TAMILNADU. WE WOULD LIKE TO PURCHASE A ITEM FROM 'XYZ' IN ANDHRA PRADESH. XYZ PURCHASES THE ITEM FROM SOME OTHER MAUFACTURER BUT DOES SOME BLENDING WORK WITH THE ITEM AND SUPPLIES US WITH TAX INVOICE HAVING E.D OF RS 1020/- PER TONNE AND CST OF 2%.
WE SUPPLY THIS ITEM TO A INDUSTRY (ABC) IN TAMINADU, PRODUCING FINISHED GOODS. THE MATERIAL IS TRANSPORTED FROM XYZ TO ABC DIRECTLY. ONLY THE TAX INVOICE IS IN OUR NAME. WE DOES NOT EVEN STORE THE MATERIAL.
WE PROVIDE OUR BILL TO ABC WITH MATERIAL PRICE AND 5% VAT.
MY QUESTIONS
1) CAN I CHARGE E.D OF RS 1020/- PER TONNE (WHATEVER XYZ CHARGES ME) TO THE INDUSTRY ABC?
2) IF NO IS THE ANSWER FOR 1st QUESTION, THEN CAN I AVAIL CENVAT CREDIT FOR THE E.D AMOUNT OF RS 1020/- PER TONNE PAID BY ME TO XYZ.
KINDLY ADVICE.
CAclubindia
