Excise Duty by 1st or 2nd Stage Dealer...!

Well Rajeev, certainly the dealer can sell goods at a higher price and there is no restriction on this under Central Excise law.

However, the dealer will only pass on that much duty as has been paid by the manufacturer. he is not required to pay any duty or pass on any higher duty to his buyer. The first part of the invoice will show that commercial value and excise duty will be Rs. 10.30 only (dont worry if it is not 10.3%, it need not be). At the bottom of the invoice, the dealer is required to give details of the manufacturer invoice on which he is passing on the credit. Dealer is not required to disclose anything to the manufacturer.

Rajeshji, thanks for the comments...regret that i wont be able to get into this business, as it would be disclosing my purchase price to the customer [C]

However...thanks once again...

Hi..

My query is... A - is a 1st Stage Dealer and B - is a Manufacturer...

Both are located in one State of West Bengal...

Now "B" purchases Oil from A' @ Rs.33 + 12.5% VAT

"A" gives two bills to "B".

1) Excise Bill (1st stage dealer bill) which shows Basic Rate @ Rs. 44 + 14.42% Excise, and gives details of Invoice  from Indian Oil @ Rs. 44 + 14.42%

2) VAT Bill @ Rs. 33 + 12.5% VAT.

"B" pays Rs. 33 + 12.5% only.

Can "B" claim Excise for 44x14.42% ? If not then for what rate can it claim.

Please explain....Thanks in Advance

P.S. The Excise Rate applicable on the prodcut is 14.42%

The dealer will take credit of duty paid by the manufacturer. further the dealer will pass on credit paid by the manufacturer. Any change in price, in between is irrelevant.

Can we pass on ACD 4% also?

we are 1st stage dealer in mumbai and we have branch at Gujrat  my query is whether we can transfer our excise duty to gujrat and what is our position whether we are a 1st stage dealer in gujrat or 2nd stage dealer in Gujrat

A.P.mathi

Hi Mr. Rajesh, 

""Well Rajeev, certainly the dealer can sell goods at a higher price and there is no restriction on this under Central Excise law.

However, the dealer will only pass on that much duty as has been paid by the manufacturer. he is not required to pay any duty or pass on any higher duty to his buyer. The first part of the invoice will show that commercial value and excise duty will be Rs. 10.30 only (dont worry if it is not 10.3%, it need not be). At the bottom of the invoice, the dealer is required to give details of the manufacturer invoice on which he is passing on the credit. Dealer is not required to disclose anything to the manufacturer.""

Can you please provide me with the info regarding the relevant Section / Rule / Notification  , which require the Central Excise dealer to disclose his procurement details??

Thanks in advance...

Originally posted by : R.Sankaranarayanan
	Hi Mr. Rajesh,    ""Well Rajeev, certainly the dealer can sell goods at a higher price and there is no restriction on this under Central Excise law. However, the dealer will only pass on that much duty as has been paid by the manufacturer. he is not required to pay any duty or pass on any higher duty to his buyer. The first part of the invoice will show that commercial value and excise duty will be10.30 only (dont worry if it is not 10.3%, it need not be). At the bottom of the invoice, the dealer is required to give details of the manufacturer invoice on which he is passing on the credit. Dealer is not required to disclose anything to the manufacturer."" Can you please provide me with the info regarding the relevant Section / Rule / Notification  , which require the Central Excise dealer to disclose his procurement details?? Thanks in advance...

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My query is... A - is a manufacturer and B - is a Trader...

Both are located in one State say Maharashtra...

Now B" purchases materials from A' @ Rs. 100/- + 10.30% + 5% VAT p/kg

and want to sell the same to C" who is located in Maharashtra

@ Rs. 120/- + 10.30% + 5% VAT

Is this transaction is possible under Excise, b'se the manufacturer is charging

a duty of Rs. 10.30/- and the Trader wants to charge the duty @ Rs. 12.36/-

Can he make any payment by PLA [ of Rs.2.36/- ] ?

Reason behind this is that B" dont want to disclose its customer to A' and want

to sell the material at a higher value with a profit of Rs. 20/- p/kg

Originally posted by : ashwin
	My query is... A - is a manufacturer and B - is a Trader... Both are located in one State say Maharashtra... Now B" purchases materials from A' @ 100/- + 10.30% + 5% VAT p/kg and want to sell the same to C" who is located in Maharashtra   @ 120/- + 10.30% + 5% VAT Is this transaction is possible under Excise, b'se the manufacturer is charging a duty of 10.30/- and the Trader wants to charge the duty @ 12.36/- Can he make any payment by PLA [ of Rs.2.36/- ] ? Reason behind this is that B" dont want to disclose its customer to A' and want to sell the material at a higher value with a profit of 20/- p/kg

not possible for a trader

if the excise duty invoice is not mandatory for C then he can sale at any price, but during issue of cenvatable invoice he has to declare his cost of purchase and excise contents.

Hi..

My query is... A - is a manufacturer and B - is a Trader...

A , is located in other country and the B, is located in India like Karnataka

Now B" purchases materials from A' @ Rs.100/- and want to sell the same to C" who is located inside India, like Jamshedhpur 

@ Rs.120/-2% CST

Is this transaction is it possible, where Excise Duty is applicable for B

Please explain....

Thanks in Advance

Nanda Kishore

·         We are trader of industrial oil & we do not have excise registration on our name. However my brother in law having different firm which is registered under excise. Now to offer best rates & grab more orders we want to pass on excise benefit to customers from our firm also.

·         In that case we have heard that we can show our name in excise invoice as buyer & our customer name as consignee.

·         But to pass on excise duty to customer we want to show our sale rate to customer not our purchase rate.

·         In that case can my brother in law issue me different commercial invoice of my original purchase rate?

·         Or any other best option that will not disclose our purchase rates  & we can pass benefits to customer also.

·       

We thank you in advance & look forward to receive your reply.

in case of the dealer dealer ( only 1st and 2nd stage dealer) can pass that much crdit which it has paid to the manufacture on the purchase. in case if he sells the same at higher prices then he has to restrict the duty to that which has been paid ont the input transaction