06 November 2013
ONE AJAY IMPEX PVT LTD MFG COMPANY HAS FOUR DIRECTOR A,B,C, & D.
COMPANY SELLS EXCISABLE GOODS AND CHARGE EXCISE TO RAJU ENTERPRISES FOR RS. 2.50 LACS IN WHICH A IS PROPRITOR.
RAJUN ENTERPRISES WHO IS TRADER AND IS NOT REGISTERED WITH EXCISE SELLS THESE GOODS TO AMAR CONSTRUCTION(NOT REGD WITH EXCISE) WITHOUT CHARGING EXCISE FOR RS. 3.00 LACS.
MY QUESTION IS :-
SINCE GOODS SOLD BY AJAY IMPEX PVT LTD TO RAJU ENTERPRISES IS VALID WHIL A IS DIRECTOR IN AJAY IMPEX PVT LTD AND IS PROPRITOR IN RAJU ENTERPRISES.
MY SECOND QUESTION IS : GOODS SOLD BY RAJU ENTERPRISE AT HIGHER PRICE IS VALID OR NOT. CAN RAJU ENTERPRISES SELL GOODS WITHOUT OBTAINING EXCISE REGN.
12 December 2013
Many companies do such clandestine deals.It can not be said as illegal,but certainly immoral.Here,the margin of profit is not wide enough to make a case on it.Excise is chargeable at the production poit only,not on succeeding sale points.No Excise registration is necessary for only traders of goods....mjk
CAclubindia
