Excise duty

This query is : Open

Rahul (Querist)
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10 June 2015 Dear Expert,

We are manufacturer of Automotive Part, due to some capacity problem we are purchasing the same part from other unit and sale that part to our customer.
Query:-
(1) Above part we are purchasing from other unit and we are paying the same price which price we are charging from our customer.

(2) We are just packaging the product and sale to our customer on same price and duty so that we can fulfil customer requirement.
In the above scenario, please confirm duty process is right or wrong.

Arun Kumar Singh

Arun Kumar Singh (Expert)
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10 June 2015 You are saying that packing and repacking have been covered under the definition of deemed manufacture. For the purpose of deemed manufacturer specific requirement is that goods should be fall under the specific chapter heading. You should consult with any professional.

ADITYA

ADITYA (Expert)
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10 June 2015 Agreed with Mr Arun Kumar Singh

If it is not fall under Deemed Manufacturing, this activity will go to Trading (chances are most likely)You have to take permission from the Excise Department to do such activity

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Rahul

Rahul (Querist)
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10 June 2015 Dear Expet,

Thanks for reply:-

If this activity goes to trading activity then what we have to do:-

1) We have to take separate registration for it or something else

2) Please explain trading activity process: -

3) We have to maintain separate A/c’s for it.