Manufacturer & trading within same premises

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Others
24 Points Joined June 2015

Dear All,

We are a manufacturer registered with excise. However we plan to now do trading of certain items which are not used in our current operations. Below are my questions based on the above statement

  • Can we manufacture and trade within the same premises? We will maintain separate books, invoices and stocks for the same.
  • Can I trade the product without excise? Can I charge only VAT on the product?
  • Can I take the modvat credit from the product that I intend to trade and use the credit in my manufacturing as I will be billing only with VAT and no excise shall be claimed from the customer.
  • Should I regsiter separately as trader in excise as I am registered only as manufacturer at the moment?

Above are the basic questions I have.

Regards,

Satish Patnaik

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On 29 June 2015 at 15:10 Report
Replies (7)
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Officer - Excise
525 Points Joined July 2013
You can't take cenat credit, since you are not charging duty to your customer and you need to obtain permission from the range commissionerate to tradtrading activity.
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On 29 June 2015 at 18:29
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GST Advocate
15220 Points Joined January 2009

If products are deffirent then you can do the trading and manufacturing from the same premises. You can trade the goods without passing excise duty. The cenvat credit will not be available on input or input services used in the trading activity. The register should be saperate for both activity. 

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On 01 July 2015 at 14:19
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ADVOCATE
124 Points Joined October 2015

In respect of common input services on which cenvat credit has been taken the company would be required to follow the provisions of rule 6 of the Cenvat Credit Rules, 2004

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On 01 November 2015 at 21:12
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accountant
22 Points Joined September 2012

Dear all

I want to know a unit can manufacture two products, one is excisable and another in non excisable in same factory / premises

Please advise

thanks

 

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On 03 November 2015 at 15:07
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GST Advocate
15220 Points Joined January 2009

Dear RK,

It is possible to manufactur excisable and non-excisable goods in the same premises. 

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On 03 November 2015 at 15:13
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accountant
22 Points Joined September 2012

Thanks Dear,

But we have to maintain seperate stock records and space for Raw Material and Finished Goods as i understand.

Is their any circular / notification regarding, if you know.

 

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On 03 November 2015 at 15:53
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Sr. Officer - Central Excise/Cash
514 Points Joined August 2010
Originally posted by : Satish Patnaik

Dear All,

We are a manufacturer registered with excise. However we plan to now do trading of certain items which are not used in our current operations. Below are my questions based on the above statement


Can we manufacture and trade within the same premises? We will maintain separate books, invoices and stocks for the same.

OK.  Yes you have to maintain separate register for that trading goods.
Can I trade the product without excise? Can I charge only VAT on the product?

OK. 


Can I take the modvat credit from the product that I intend to trade and use the credit in my manufacturing as I will be billing only with VAT and no excise shall be claimed from the customer.

No.  You are not eligible for taking cenvat for that trading goods.


Should I regsiter separately as trader in excise as I am registered only as manufacturer at the moment?

No, it is not neccessary

Also,  If you take Input service tax, you have to reverse the s.tax for common input s.tax credit as per rule 6 of CCR

 

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On 08 November 2015 at 15:28


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