Vikas (Accountant) 10 December 2016
Sir, My client in engaged in the business of producing iron wires and nails from iron rods. 1) Is this activity tantamount to manufacture and need to apply for excise registration? 2) If yes than whether central excise is applicable on wire & nail produce and what is the rate applicable on it. 3) Can it take cenvat credit .
Prasanth (CA Final Students) 11 December 2016
Hello sir, this is Prasanth
Regarding your query the production of iron wires is considered as manufacturing activity under section 2(f) of Central Excise Act,1944 hence registration for excise is needed however there is Threshold limit of 1.5crores turnover ,it is complusory to register only if such limit exceeds.
General rate of Excise duty is 12.5% can also be able to claim cenvat credit.
Hope this may solve your query😉