Ram kr. (Buisness) (883 Points)
28 July 2016
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 29 July 2016
export of goods are not service, but buy and sale
trading sales are not "input" as per CCR 2004 for availing credit .
you can claim rebate of duty paid on trading goods by exporting the goods under cover of ARE-1 ......for more details read Notification No. 20/2004-Central Excise (N.T.)
Ram kr.
(Buisness)
(883 Points)
Replied 31 July 2016
As a manufacturer exporter trading goods are not our manufacturing item then how can we prepare are-1 for these product. Moreover, trading goods is defined in negative list under section 56 of service tax act but it is does not defined word like trading export or trading domestic. Please advice.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 01 August 2016
ARE1 would be prepared and executed at the place of manufacturing and removal or the registered DEALER/DEPOT" from where the goods are procured, and not at the exporters end
Ram kr.
(Buisness)
(883 Points)
Replied 04 August 2016
Dear Sir,
We are taking cenvat credit on all goods. We are unable to maintain seperate record of manufacturing goods and trading goods. It means we have to reverse 7% on such trading goods because we are availing service tax credit on common inputs like Rent and Bank chargea.
Please advice.
Thanks
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 06 August 2016
if there is no seperate registration for trading and goods are exported from input after "reversal of cenvat credit availed in RG23A part II" then it is not a specific trading, but input sales , as it is basis, and its a part of manufacturing activity.
however if the trading registration ( excise registered dealer/depot) is done then the assesee has t keep records for both seperately to avail the benefits
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