Manufacturer & trading within same premises

Satish Patnaik (Others) (24 Points)

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