We are a manufacturer of pharma medicines and running our unit in special incentive zone in HImachal pradesh and availing central excise exemption under NT 49-50/2003. Now a company wants to work on loan license and want to use our factory premises for manufacturing of goods. What are the formalities by the central excise department for registration for a loan license.
07 January 2017
Goods are manufactured by factory owner under brand name of loan licensees. In such case the loan licensee is not the manufacturer. If principal manufacturer are located in the exempted area then no need to take excise registration.
09 January 2017
But on the labels and cartons the name of the loan licensee will be printed as manufactured by ( detail of Loan LIcenseee) , TIN will be issued on the name of Loan Licensee , Drug License will be issued in the name of Loan Licensee and at the time of dispatch Bill will be made from Loan LIcensee's account.
Then if all the details of loan licensess will be mentioned on the statutory forms and Bills then how he is not covered in the term : MANUFACTURER" and why he is not liable under excise registration.
09 January 2017
If principal manufacturer are paying excise duty at the time of manufacturing of the goods then loan licensee are exempt from paying excise duty. If you want to know in details then visit my profile.
CAclubindia
