I have a manufacturing Unit A to which all the laws releating to Excise Service tax Customs are applicable. Because of such heavy burden of tax in order to survive I decide to to form a trading unit B which is sister concern of Unit A. Unit A will sell excisable goods to Unit B & thenafter Unit B will sell this goods to other retailors & wholsellers. Does it create any problem in Excise . Pls advice me .
30 December 2014
You can setup a trading unit of sister concern unit but cenvat credit of input and input services will not be applicable for trading activity. You should consult with any professional for this activity.
CAclubindia
