Manufacturer & trading within same premises

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Satish Patnaik

Others

21 Points Posted on 29 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

Replies (7)

kumar hattanna

Officer - Excise

391 Points Posted on 29 June 2015

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.

Arun Kumar Singh

GST Advocate

13166 Points Posted on 01 July 2015

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.

K.S.NAVEEN KUMAR

ADVOCATE

128 Points Posted on 01 November 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

R.K. Singh

accountant

24 Points Posted on 03 November 2015

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

Arun Kumar Singh

GST Advocate

13166 Points Posted on 03 November 2015

Dear RK,

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

R.K. Singh

accountant

24 Points Posted on 03 November 2015

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.

R P Ananthakumar

Sr. Officer - Central Excise/Cash

492 Points Posted on 08 November 2015

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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Manufacturer & trading within same premises

Satish Patnaik

kumar hattanna

Arun Kumar Singh

K.S.NAVEEN KUMAR

R.K. Singh

Arun Kumar Singh

R.K. Singh

R P Ananthakumar

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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Manufacturer & trading within same premises

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

Leave a Reply

Recent Topics :

Related Topics :

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?

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