Tax liability of a dealer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Dear Friends,

I am very confused about the calculation of tax liability of a dealer under central excise: -

Example

if a dealer purchases goods from manufacturer Rs. 1000
Add; excise duty x
add; VAT y
-----
Total purchasing amount
--------

My question is that-

Now when he sales above goods then
can he charge excise duty from purchaser?

Annu Agarwal

Annu Agarwal (Expert)
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21 November 2013 A dealer can never charge excise duty as he is not the manufacturer.
He passes on the excise duty to the seller.When a dealer makes a sale,he only charges vat/cst whatever applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Dear Annu agarwal

Thanks for valuable solution of my problem

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Annu Agarwal

Annu Agarwal (Expert)
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21 November 2013 For your refernce please check the example below:

When you PURCHASE from manufacturer

basic pricexunit(100*10)=1000
add:excise duty=123.6
add:vat5%on 1123.6=56.18
Total =1179.78 or 1180

Now when you SALE
Basic price would be(1000+123.6)/10=112.36
assumuning you sale the same quantity that is 10 units.You may add your profit % to basic price to be recovered from customer.say now your selling price is 113.36

selling pricexunit(113.36*10)=1133.6
add:vat5% =56.68
Total =1190.28

details of duty passed on
excise duty 120
edu cess 2.4
hsec 1.2
total duty 123.6

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Annu ji

another question is that what type of documents are required to maintain for a reg. dealer and name of documents

Annu Agarwal

Annu Agarwal (Expert)
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21 November 2013 a Registered dealer has to maintain bills books as per Excise laws.RG registers and a stock register.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Dear Annu

thanks for all