Trading and manufacturing

483 views 1 replies

Please if anyone can answer :

Two Firms ABC and XYZ are sharing same premises. ABC is a manufacturer of a product and is registered with excise and is an SSI unit and takes exemption limit of 1.5 cr , then pays excise thereafter.

XYZ is a Trader and sells same product , purchases from ABC and also from other sources and sells to its customers . Since XYZ is a trader he is not registered with excise . No godown of XYZ is there as directly dispatches material from its source to its customer, ABC being one of them. 

Customer of ABC and XYZ are sometimes common.

What are the excise implication on XYZ ? and ABC ?

Seperate Gates required for ABC and XYZ required ? 

Can XYZ dispatch material directly from its OEM /source to its customers? Godown necessary ? Tax implications ?

 

Replies (1)

Manufacturing and trading activity can not be possible in the same premises if product are same.

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