registration

This query is : Resolved

RAJAT (Querist)
Follow

27 June 2011 we are a small scale manufacturing unit which is not registered for excise?

my question is
1) can we do trading of items
- which are our input for manufacturing

If we can do trading,then suppose if our sales are
manufacturing - 120 lac
trading - 50 lac
(i mean any combination due to which our total sale crosses 150 lac)
then do we have to get ourseleves registered for excise dept.

If there is no such requirement of registration then do we have to keep seperate records of sale/purchase for manufacturing and trading.
what if we use the input both for trading sale and our own consumption

and if we have to get registered under the excise then do we have to charge excise on trading sale also or we still can keep seperate records and charge excise on our manufacturing sale only

i hope i made myself clear

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

27 June 2011 Excise is payable on what. It is on goods manufactured and not traded. You can run your unit without registration with excise when your turnover is below 150. But it is always better to register with the excise department. whether your turnover is 150 or not. If your T.O. is below 150 it is not payable but suppose you have dispatched the goods without payment of excise and in any state your manufactured goods are seized by the Excise Department for non payment of Excise at that point of time your company cannot represent as you are not aware that your manufactured goods have been seized. The purchaser of goods shall call back the person concerned from whom he has purchased and through the chain it will come to you then you require a certificate from the Excise department that as your turn over is below the limit no excise is payable. Do you think without registration excise department will give you this certificate. The only reply the excise department will give is "Unit not registered with us"

In long run your the buyers will not purchase your goods. Now you decide do you wnat to register your unit or not.

RAJAT

RAJAT (Querist)
Follow

27 June 2011 actually we are an export packaging unit and manufactures wooden pallets cable drums and boxes.
we also use plywood as an input and wanted to trade in that also.

All our purchases is excise free and most of our customers do not want excise burden on them (latter part seems unreal but true)

Now if due to trading we have to get an excise number then it would be difficult for us to retain our customers

that is why i wanted to know that if because of trading our cumilative TO crosses 150 lac,than it is mandatory to get registered or not? and once registered do we have to charge excise on manufacturing sale

Thanks for prompt reply

Upgrade to CAclubindia Pro. Subscribe Now!

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

28 June 2011 First time you have stated that you are manufacturer.

The case which I have cited is true and I have handled the same that was in case of perishable goods.

If you are trading then how you are covered under excise.