Excise REgistration of Trading Company

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V.S. Balasubramanian (Querist)
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30 May 2009 am working for German company who going to be importing finished machine tools equipment and selling in the local market (India) and export the same to the neighbouring countries.

Should my company liable for excise registration.

They will also be importing spare parts for the equipment for repairing and servicing purpose.

No reproduction process involved

I understand that the customs duty in India for importing this equipments is to be paid in two segments.

1. BCD with Surcharge along with Cess

2. CVD with Surchage, Cess along with the ASD (Additonal Special Duty)

My Questions are as follows;

For Trader cost of goods value increased by both these duty example my purchase price is Rs. 1000 + 100 (BCD) + 100 (CVD & ASD) = Rs. 1200 will be my landed cost.

we want to have cost of goods level @ Rs. 1100 and add our profit % and when we sell we want to pass on the Rs. 100 (CVD & ASD) to our customer.

What are all the possibilities of doing that. What is 1stage & 2nd stage dealer.

Whetehr I can register with excise department as Trader cum Dealer to enable me to pass on the CENVAT Credit to my local customers.

Regards & Thanks

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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30 May 2009 Yes you can register under central excise as a dealer and issue invoices which are eligible for credit by cusotmers. Apply in R-1 and you will have to maintain invoice wsie stock records.

When you export to neighbouring coutnrie you would also be eligible for the drawback of duties paid.

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