First stege dealer invoice procedure

This query is : Resolved

HIMANSHU (Querist)
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20 March 2013 Dear sir/Mam,

My query goes as follows:

X Ltd is a manufacturer. It invoices to B Ltd (First stage dealer) as follows

Basic Value 200.00
Add: Excise @ 12.36% 24.72
Total 224.72

Now B ltd wants to bill to "C" at Rs.300

Option A of billing

Basic value 300.00
Add: Excise @ 12.36% 37.08
Total 337.08

Option B of billing

Basic Value 300.00
Add: Excise @12.36% 24.72(restricted to the amount paid to manufacturer)
Total 324.72

As i have read that a FSD can pass on the the CENVAT Credit to another person under the cover of invoice, so please suggest me what will be the correct procedure to issue invoice under excise.

Rajeev Kumar Garg

Rajeev Kumar Garg (Expert)
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21 March 2013 OPTION "B" IS CORRECT. BUT SOME DEALERS GIVE THEIR PRICE INCLUSIVE DUTY, IN THAT CASE THERE IS NO NEDD TO ADD DUTY AMOUNT IN TOTAL. HOWEVER, DUTY AMOUNT IS SHOWN IN INVOICE SEPATATLY EQUIVALENT TO THEIR PURCHAQSE INVOICE.
THANKS.
R.K. GARG
CONSULTANT