LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Trading by a manufacturer

29 March 2013

Dear All,

Greetings of the day!

I am a manufacturer of fabric item, I had purchased excisable raw material in a quantity more than i required. Now, i want to sale some of those material. Can i do So?

if Yes then what will be the procedure & Formalities.

Please Reply

Thanks & Regards

Balram Pandey

Reply
Follow
Share

1 Replies

Krunal Parekh (Proprietor) (144 Points)
Replied 29 March 2013

Dear Mr. Balram,

If you are manufacturer you surely have the (SALES TAX REGD.) VAT/CST NO & MOST IMPORT (CENTRAL EXCISE REGD.) ECC NO. etc based on which you can sell the goods to the purchaser who is a manufacturer or a trader.

But in any case if you sell to the manufacturer or to the trader, they will not be able to claim for the CENVAT benefit as they willbe on the second stage of billing.

They will be able to claim the CENVAT benefit only if you sell it say saying stock clearence or rejetion of the goods and the billing is done reverse throught the same supplier who had supplied you the material.

Partial quantity (i.e. the quantity that you wish to sell) can be termed as rejetion of the goods and sold to the manufacturer/trader you wish to sell but as said only through the supplier who supplied on first stage billing.

By doing this your intentry will be maintained as well as the trader/manufacturer to whom you are selling will be able to claim for the said MODVAT / CENVAT.

Regards,

Krunal Parekh

1 Like