We are a trading company in scrap metal in Madhya Pradesh. we do not have a excise registeration presently. we want to purchase scrap metal from gujrat and sell it to factory in Madhya Pradesh. Do we require Excise registeration and do we have excise liability on us.
No, not require as you are only a trader.
Scrap is not manufactured by you, you are not into manufacturing.
Only vat as applicable in your state is to be levied.
Dear dayal
Thankyou for your prompt reply, Also, how the invoicing will be done as i will receive a excise bill on my purchase...and how will i have bill the same to my client
in my opinion you should get an excise registration if you are selling to a mfrer as otherwise your customer will not be able to take the benefit of cevat credit on your bill and hence would prefer to buy from some one who is registered under excise as buying from you would be a costly affair for him.
Aggarwal Sarawagi and Co
New Delhi
CA
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