Set-off for excise duty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2013 We are in trading business as Industrial suppliers. We purchase welding electrodes and consumable products from manufacturer; they bill us including excise duty. These products we sell to our customers working in manufacturing field. They use these products in production process. Now, can we bill inclusive of excise duty to our customers so that they can set-off excise duty, or is there any provision for set-off of excise duty from vender to customer as we are middleman trader in them? Any other way to set-off against other taxes?

CA Chirag Haraniya

CA Chirag Haraniya (Expert)
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24 March 2013 Yes you can issue Excise Invoice and on the basis of which your customer can claim credit. Provided you have purchased goods under excisable goods or in case of imported goods you have paid excise duty.

Further return relating to transfer of ED will required to be submitted.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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25 March 2013 You have to get registered for Excise as a dealer(First Stage or Second Stage ) then you can issue excise invoice which will be the base for claiming cenvat by your customers.

You need to file returns and adhere with the provisions of law for registers and payment etc..

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Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2013 Thank you Mr. Chirag and Mr. Dileep for the guidance... I will proceed further as you say... Thank you once again...