Clarification on Excise Duty

Dear Sir,

 

We are the manufacturers of Electrical Panels for Industrial & domestical use.  We have registered under SSI.  We understand that if the turnover crosses 1.50 crores in a financial year we have to register under the Excise Duty and we are liable for excise duty.

 

Actually we have turnover on manufacturing of Control Panels around 1.1 crores and we have a turnover on trading (selling of Meters, Relays, Capacitors,  Hagers and switches (manufactured by various manufacturers like Siemens, Elcon, L & T, Schneider) around 0.6 crores totalling to 1.70 crores.


Since we have not crossed the 1.5 crores in manufacturing alone, we have no need to register under Excise.  But if caclulate overall we have to register and liable for excise.

 

What will be the calculation?  If it calculate separately, how to maintain books of accounts as well as stocks.

In the above circumstances shall we come under the excise duty.  Shall we do register under excise duty and pay the same or we have to cross the limit of 1.5 crores on Manufacturing only. Please clarify.

 

Regards,

S. Selvakumar

 

Replies (1)

you have to establish the bifrcation between manufacturing and trading activities in terms of valuation, by stock book / seperate invoice series as u like, 

trading turnover is not included in excise but u have to produce stock book and purchase bills for same to claim it as trading activity, in absence the department will treat it as manufacture.

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