one of my friend is doing a trading business registered with the Excise. he had been purchasing materials from a dealer (third stage dealer) wether can he pass on the credit to his buyers? or not. pls. give your expertise on this.
snambiraajan (consultant) (98 Points)
04 June 2014one of my friend is doing a trading business registered with the Excise. he had been purchasing materials from a dealer (third stage dealer) wether can he pass on the credit to his buyers? or not. pls. give your expertise on this.
Prashanth
(Tax Consultant)
(36 Points)
Replied 04 June 2014
Cenvat Credit can be taken only on the basis of following -
1. Invoice of manufacturer from factory
2. Invoice of manufacturer from his depot or premises of consignment agent
3. Invoice issued by registered importer
4. Invoice issued by importer from his premises or consignment registered with Central Excise
5. Invoice issued by registered first stage or second stage dealer
6. Supplementary Invoice by manufacturer
7. Bill of Entry
Hence Cenvat credit are not availed on purchase of materials from 3rd stage dealers
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