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Urgent Please

936 views 3 replies

 

What is the difference between dealer registration of central excise and manufacturer… what’s benefit to take dealer registration or manufacturing registration I know that duty is payable by manufacturer ?

Replies (3)

manufacturer registration = when any person manufacture goods then he is entitled to get input credit of central excise paid on input for set off against his liability of taxable goods manufactured and cleared.

 

dealer registration = when a trader want to pass on the excise duty of goods on which excise duty is charged from manufacturing point, then he has to get registered with excise as dealer and issue cenvatable invoice against the principal manufacturer invoice and pass on the proportionate or full duty of excise to next manufacturer / dealer buyer, on the strength of this dealer invoice the manufacturer buyer is entitled to avail input credit and dealer is entitled to issue stage 2 dealer cenvatable invoice..

 

Dealer purchased goods from manufacturer and passes duty to second stage dealer or manufacturer so what will be first stage dealer tax liability..?

under dealer registration there is no EXCISE liability , they are just distributing the excise paid under manufacturing invoice to next buyer or dealer,

 

however there is no direct nexus of excise dealership with vat. vat is applicable as per the state rules


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