Excise Registration

V.S. Balasubramanian (QuickBooks Pro Advisor Consultant & Trainer)   (145 Points)

29 May 2009  

 I am working for German company who going to be importing finished machine tools equipment and selling in the local market (India) and export the same to the neighbouring countries.

 
Should my company liable for excise registration.
 
They will also be importing spare parts for the equipment for repairing and servicing purpose.
 
No reproduction process involved
 
I understand that the customs duty in India for importing this equipments is to be paid in two segments.
 
1.  BCD with Surcharge along with Cess
 
2.  CVD with Surchage, Cess along with the ASD (Additonal Special Duty)
 
My Questions are as follows;
 
For Trader cost of goods value increased by both these duty example my purchase price is Rs. 1000 + 100 (BCD) + 100 (CVD & ASD) = Rs. 1200 will be my landed cost.
 
we want to have cost of goods level @ Rs. 1100 and add our profit % and when we sell we want to pass on the Rs. 100 (CVD & ASD) to our customer.
 
What are all the possibilities of doing that.  What is 1stage & 2nd stage dealer.
 
Whetehr I can register with excise department as Trader cum Dealer to enable me to pass on the CENVAT Credit to my local customers.