X Ltd is a manufacturer. It invoices to B Ltd (First stage dealer) as follows
Basic Value 200.00 Add: Excise @ 12.36% 24.72 Total 224.72
Now B ltd wants to bill to "C" at Rs.300
Option A of billing
Basic value 300.00 Add: Excise @ 12.36% 37.08 Total 337.08
Option B of billing
Basic Value 300.00 Add: Excise @12.36% 24.72(restricted to the amount paid to manufacturer) Total 324.72
As i have read that a FSD can pass on the the CENVAT Credit to another person under the cover of invoice, so please suggest me what will be the correct procedure to issue invoice under excise.
21 March 2013
OPTION "B" IS CORRECT. BUT SOME DEALERS GIVE THEIR PRICE INCLUSIVE DUTY, IN THAT CASE THERE IS NO NEDD TO ADD DUTY AMOUNT IN TOTAL. HOWEVER, DUTY AMOUNT IS SHOWN IN INVOICE SEPATATLY EQUIVALENT TO THEIR PURCHAQSE INVOICE. THANKS. R.K. GARG CONSULTANT
CAclubindia
