Trading Excisable Goods

Guys ,

            Trading firm which purchase Goods on which excise duty is levied. Now the question is can the trading firm recover the excise amount from the customer ??......i know he can't charge Excise duty as he is not a manufacturer . But is there any method or form filling for recovering or charging such amount to the customer.Experts Please advise.

Replies (4)

your trading invoice would be inclusive of all taxes + your profit. + vat/CST if applicable. 

you mean excise duty too??......can he levy excise duty??...........he is unregistered under excise!

trader is not eligible to charge excise ............but see one illustration 

 

goods putchased by trader, and onward sale to 1) excise registered dealer 2) non excise dealer

 

basic value 10000

escise ..........1030

------------------------

.....................11030

CST .........      221

freight ...........400

------------------------

total cost ...11651 

 

now the dealer want to sale with 15% margin over cost 

1) to non excisable buyer ........................ 11651*115/100 = 13399 + VAT or CST as applicable

2) to excisesable buyer ..........................same as above 

 

however if the dealer is under excise registration as "dealer" then he will issue cenvatable invoice, for 1130 alongwith the commercial invoice, and the buyer is entitled to take input credit of 1130 under his manufacturing process.

for a non excisable buyer, the excise duty is non eligible for input credit, but the vendor will charge 11399+ applicable vat or cst to him. 

 

excise is charged at manufacture point, and dealer has nothing to do about it, he can mere pass it to next manufacturing buyer by maintaining dealer registeration for pass on the " duty  paid by manufacturering unit" to eligible manufacturing dealer ,

eligible manufacturing dealer has to communicate the willingness for cenvatable invoice from seller, furnishning him 1) Central Excise registration number 2) Range 3) division 4) commissionarate of self to registered excise dealer ( vendor)

thank you sir .
 

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