Urget query ! set off of excise duty ?

 

Hello everyone,

Mr.X purchases goods from manufacturer and he supplies the same to manufacturing companies. on purchases mfr charges him 12.36% of excise duty.

he do not want that company (his clients to whom goods are sold) should know the details of the manufacturer and their price and his margin. he fears that clients will directly contact the manufacturer.

My question:

1. How can he pass the cenvat credit to the company/clients if

a) goods are directly transported from manufacturer warehouse to company/clients place ? and

b) He will receive the goods and then he will transport it to the company/client place ?

2. Any other planning possible in this situation ?

Replies (4)

Registered Dealer can pass the cenvat credit to the company or client. dealer can do the transit sale.

Yes I agree with the above view.

how can my client get registration under central excise. i have heard about first stage dealer. but suppose my client get registered as first stage dealer then can he show the excise duty paid by him in his invoice so that the company to him goods are ultimately sold can claim the credit of excise duty ?

Yes you can pass on the credit by showing the amount of duty paid while procuring the said good from the manufacturer or an Importer. Registration has to be taken under the CENVAT Credit Rule,2004 and Central Excise Rules.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details