Machine trading

This query is : Resolved

dev (Querist)
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18 October 2012 dear sir,
i want to ask that if i sell machine on excise tax invoice and sell to one trader party...i pay my all excise duty and vat duty ..then that trader party give me payment as per invoice..and he/she sell machine with profit and also pay the duty ..so is it leaglly....

U S Sharma

U S Sharma (Expert)
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18 October 2012 he is not eligible to pay duty, but vat is payable after adjustment of input credit on purchase.

dev

dev (Querist)
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19 October 2012 thanks..sharmaji..for reply..
but i m still bit of confused...let me explain my confusion..here..i am a manufacturer of machineries..and i m also have excise registration and GVAT registration..now when i make invoice bill my opposite party whom i sell machine...they can't give us excise duty..because in textile market they cant have a excise CNVAT credit..so they have to pay extra of excise..

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dev

dev (Querist)
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19 October 2012 so , if i start a new firm of trader and i sell my machine to that trading firm with excise invoice and pay my duty..and my that trading firm sell machine by making invoice of GVAT bill..so textile company ALSO get the GVAT credit...so is this right..

thanks in andvance..

U S Sharma

U S Sharma (Expert)
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19 October 2012 excise is liability of manufacturer and it does not matter that the price to customer is inclusive of excise duty or excise is charged extra.

if a buyer is not getting credit of excise does not mean that manufacturer can not charge / pay excise, however the bill to buyer will be accounted as inclusive of excise.

not advised to open trading concern alongwith manufacturing, it will lead 100s of complications as the same would be treated as warehouse/depot of factory.