TMI BlogEXCISE DUTY TRADERS ISSUEX X X X Extracts X X X X X X X X Extracts X X X X ..... Hello Please solve the query related to CENVAT Like we are trading processing company (Consider B) of good, we buy goods from Manufacturer (Consider A) bring to our Godown/premises and sell to Buyers (Consider C). Now Manufacturer Bills us with 2% of Excise duty on good. Like ₹ 100 + 2(2% of Excise duty) = 102 Now Question is can B pass excise duty credit to C? If yes how to bill for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C? If B wants to sell at Rs- 110 (excluding tax) Does B needs to register for Cenvat, if yes then how? Thanks In advance , please reply with if you have full knowledge. - Reply By Mahir S - The Reply = Yes sir, B needs to get register as Dealer under central excise to pass Cenvat credit. The dealer invoice consists of separate columns showing cenvat availed from A and also for passing of cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat credit to C, irrespective of charging higher price from C. You need to approach the Jurisdictional Division/Range office for necessary guidance and clarification. - Reply By Ramanujam Varadarajan - The Reply = Two options are available: 1. 'B' can obtain Central Excise Dealer registration and pass on the Cenvat credit charged by Manufacturer thru his own Cenvat Invoice. 2. If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Manufacturer direclty despatches the goods 'C' and Bill to: 'B' and Ship to 'C', still 'C' can avail Cenvat credit based on Invoice raised by Manufacturer, though 'B' can raise separate commercial Invoice for the sale effected by them to 'C' - Refer Circular of CBEC given below in this regard. Circular of CBEC dated 05.05.2015 Clarification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regarding Cenvat credit in transit sale through Dealer (iii) Where a un-registered dealer negotiates sale of an entire consignment from a manufacturer or a registered importer and orders direct transport of goods to the consignee, credit can be availed by the consignee on the basis of invoice issued by the manufacturer or the registered importer. As the dealer is not registered, there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o question of issuing any Cenvatable invoice by him . Such dealers as in the past can continue to be un-registered. - Reply By Rajagopalan Ranganathan - The Reply = Sir, B can pass on the credit provided B is registered as First Stage Dealer with Central Excise Department. B can sell the good at ₹ 110/- but he can pass on as credit only ₹ 2, being the duty paid by the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturer. B cannot pass of duty @2% of 110. - EXCISE DUTY TRADERS ISSUE - Query Started By: - subham kumar Dated:- 29-7-2015 Central Excise - Got 3 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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