Dealer excise

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2015 SIR
WE ARE FIRST STAGE DEALER ONE WE PURCHASE GOOD FROM MANUFACTUER HE ADDED BASIC EXCISE DUTY+ED.CESS +AED HOW WE CAN TAKE CREDIT IN OUR REGISTER HOW WE PASSED ON DUTY SECOND STAGE DEALER I DONT UNDERSTAND ABOUT AED DUTY MIXED WITH BASIC EXCISE?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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05 January 2015 Flowchart for first stage excise dealer
The categorization of a dealer as first stage or second stage is not predefined. It is decided during the purchase. Therefore, a dealer may be a first stage dealer or a second stage dealer depending on the type of purchase.

Let us assume we are a First Stage Dealer and you buy the goods from the importer or Manufacturer.

IMPORTER /MANUFACTURER> EXCISE DUTY TO BE REFLECTED ON THE BILL SALES TO FIRST STAGE DEALER.

MANUFACTURER :>EXCISE DUTY TO PASS ON WHICH DUTY DETAILS.

ON SECOND STAGE DEALER EXCISE TO BE PASSED ON WITH DUTY DETAILS

Second Stage Dealer

A registered dealer who purchases goods from the First Stage Dealer is called a Second Stage Dealer.

NOTED:

First Stage Dealer is one who purchases goods directly from any of the following:

The manufacturer under the cover of any invoice issued in terms of the provision of Central Excise Rules, 2002 or from the depot of the said manufacturer.

Goods purchased from the premises of the consignment agent of the said manufacturer.

Goods purchased from any other premises from where the goods are sold by or on behalf of the said manufacturer.

Goods purchased from an importer or from the depot of an importer.

Goods Purchased from the premises of the consignment agent of the importer.