First stage dealers

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2012 Being a Manufacturer transfer a excisable goods to its depo outside state.

Question : Can a Depo sale ultimately to a customer as a non excisable goods without transferring the duty???

Reply as early as possible!!!!!

Guest

Guest (Expert)

20 June 2012 Dear,
on Excisable goods you always have to pay Excise duty.
In case of Depot transfer you have to pay the duty at the time of removal of goods from the Factory. Rate of duty shall be the rate applicable at the time of removal from the factory.
Assessable Value shall be the Transaction value at Depot at the time of removal from the factory.

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2012 Dear,

My Concern is not a valuation, my concern is that whether depo shows that goods as a non-excisable sell it to cutomer as a trader not as a First/Second Stage Dealer.

Kindly Reply for that concern????

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 In the scenario where a manufacturer transfers excisable goods to its depot located outside the state, here are the key points to consider regarding excise duty:

1. **Excise Duty Liability:**
- When excisable goods are transferred from the factory to a depot outside the state, excise duty is typically payable at the time of removal of goods from the factory. The rate of duty applicable is based on the rate prevailing at the time of such removal.

2. **Assessable Value:**
- The assessable value for calculating excise duty at the time of removal from the factory would generally be the transaction value at the depot. This means the value at which the goods are sold or transferred to the depot, adjusted as per the Central Excise valuation rules to include any related expenses, if applicable.

3. **Depot Sales and Excise Duty:**
- If the goods are subsequently sold from the depot to customers as non-excisable goods (meaning without excise duty), the key consideration is whether the goods are cleared from the depot as excisable or non-excisable.

4. **Clearance of Goods from Depot:**
- If the goods are cleared from the depot as non-excisable (for example, if they are sold as non-excisable goods under applicable laws), no further excise duty would typically be payable on such clearance. However, this depends on the nature of the goods and the specific regulations governing their movement and taxation.

5. **Legal Compliance and Documentation:**
- It's essential to ensure compliance with all applicable Central Excise rules and regulations regarding the transfer of goods, payment of excise duty at the factory gate, and clearance from the depot. Proper documentation, including invoices and excise documents, must be maintained to substantiate the movement and clearance of goods.

6. **Consultation with Experts:**
- For specific guidance tailored to your situation and to ensure compliance with Central Excise laws in India, it's advisable to consult with a qualified tax advisor or legal expert familiar with excise duty regulations. They can provide detailed advice based on the specific circumstances of the depot operations and the nature of goods involved.

In summary, excise duty is typically payable at the time of removal of excisable goods from the factory. The subsequent sale from the depot may or may not attract further excise duty depending on the nature of the goods and their clearance status from the depot under applicable laws.