depot sales

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RAHUL (Querist)
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23 September 2009 if i am purchasing raw materials and then selling it to a party charging a trading profit on the same. now when i am purchasing i am paying excise duty and vat. what will be the consequences when i sell it to a customer.is excise duty to be charged on trading profit.can excise benefit be passed onto the customer.

ADITYA

ADITYA (Expert)
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23 September 2009

DEAR RAHUL,

YES YOU CAN PASS EXCISE BENEFIT TO YOUR CUSTOMER.
1 GET REGISTER WITH EXCISE AS DEALER
2 YOU NEED NOT TO CHARGE EXCISE DUTY ON YOUR TRADING PROFIT LIKE VAT. HOWEVER, YOU WILL BE REQUIRE TO FURNISH ALL YOUR PURCHASE DETAILS U/R 11 LIKE YOUR SUPPLIER'S NAME, EXCISE REGN NO. QTY PURCHASED ETC.
3. ON THE STRENGTH OF YOUR INVOICE UNDER RULE 11, YOUR CUSTOMER WILL BE ENTITLED TO AVAIL CENVAT CREDIT