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Dealers cenvat credit

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)

23 August 2011

WE ARE DEALER.

WE PURCHASE GOODS FROM MANUFACTURER (Motor Fitted Valves)

WE SELL IT TO POWER PLANT

PLEASE MENTION, HOW CAN WE GET CENVAT CREDIT.

THANKS IN ADVANCE.

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12 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 23 August 2011

dealers are not eligible for cenvat credit, they can only pass on the excise duty paid by manufacturer, through dealer registration,

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EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 24 August 2011

THANKS Mr SHARMA

PLEASE TELL THE PROCEDURE AND OR RELATED NOTIFICATIONS

AS WE CAN ACT ACCORDINGLY

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 24 August 2011

Get registered as dealer under central excise through aces.gov.in. Issue invoices in prescribed format. File quarterely returns.

Parvatharaj (Service) (28 Points)
Replied 15 January 2012

Sir,

So you mean to say a dealer should not show as input credit in his books for passing on to Customer when Invoiced...?

Should be invoiced with purchase details only....?

Parvatharaj

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 16 January 2012

a dealer has to book all purchases "including excise" he can not book any excise under credit or debit (except penalties, if any)

he has to pass on the excise duty paid on goods by principal manufacturer only to the next 2nd stage dealer or manufacturer, so he is not entitled to take credit or pay duty.

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nikhil shah (shahbhai) (63 Points)
Replied 16 January 2012

MR.Sharma ,

pls tell me if the clients send us the short amount of collection then what entry should be passed. because we received short amount from clients

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 17 January 2012

Originally posted by : nikhil shah
	MR.Sharma , pls tell me if the clients send us the short amount of collection then what entry should be passed. because we received short amount from clients

Rebate & discounts a/c dr

to Party a/c

Parvatharaj (Service) (28 Points)
Replied 22 January 2012

Mr.Sharma,

1) We are Importer. We are selling imported products domestically.

2) We are passing CVD to few of our customs.

My question is are we suppose to pass any Entry for "Input Credit-CVD" & Respective output When passed on to customer to nullify the ledger.

regards,

Parvatharaj

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 22 January 2012

Originally posted by : Parvatharaj
	Mr.Sharma, 1) We are Importer. We are selling imported products domestically. 2) We are passing CVD to few of our customs. My question is are we suppose to pass any Entry for "Input Credit-CVD" & Respective output When passed on to customer to nullify the ledger. regards, Parvatharaj

for a importing dealer, you have to debit your purchase account at the time of import with the customs duty/CVD/Cess/ SAD and any other expense incurred on such import.

as you have to sell the goods with out without dealer excise invoice, but you have no option to reduce the gross price to anyone but to collect everything paid + your margin.

at the time of excise invoice, its only register 23D maintanance, it does not reflect anywhere in your accounts, however for importing dealer, the customs bill entry under the purchase head should reflect.

Prem Chand Kankaria (Founder.Coral) (22 Points)
Replied 23 January 2012

Dealers / Importers as such are not required to pay Excise Duties as they are not 'manufacturing'. But their customers may like to take the credit of CENVAT (or CVD).

In order to do so, the Registered Dealer's Invoice must print info relating to the Original Invoice / Bill of Entry, since it is against this document, Excise Duty has been paid to the Government. Here lies complications, since the source of each line Item (Product) of an Invoice could be a distinct invoice. The Registered Dealers' Invoice is a typical one, and computerisation helps. A sample format is attached (in fact, it is for an Importer).

Apart from this, Quaterly Form - 2 Return is required to be filed. This can be filled up on the ACES site or an e-flie can be uploaded straightway.

Other relevant records are:
1. RG23D - Register of Invoices Raised along with the corresponding Purchase Invoices

2. Unused CENVAT Report

etc.

Mpore samples reports can be attached on request.

Attached File : 735874 914441 e112 regdlrexciseinvoice.pdf downloaded: 196 times

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Prem Chand Kankaria (Founder.Coral) (22 Points)
Replied 23 January 2012

Dealers / Importers as such are not required to pay Excise Duties as they are not 'manufacturing'. But their customers may like to take the credit of CENVAT (or CVD).

Apart from this, Quaterly Form - 2 Return is required to be filed. This can be filled up on the ACES site or an e-flie can be uploaded straightway.

Other relevant records are:
1. RG23D - Register of Invoices Raised along with the corresponding Purchase Invoices

2. Unused CENVAT Report

etc.

Mpore samples reports can be attached on request.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 03 October 2012

Earlier, dealers who imported goods or purchased goods from other importers had difficulty in filing dealer returns in ACES, as the ACES application did not allow such dealers to mention their own Central Excise registration number, or the IEC Code of the importer in the column prescribed for mentioning the CE Registration number in the block "Documents based on which credit is passed on" in the dealer return . The application has now been modified, so that 1st or 2nd stage dealers who have either imported goods on their own or have purchased goods from other Importers can mention their own IEC code or the IEC Code of the importers in the prescribed column. The ACES application will verify if the IEC code is a valid one available in the database or not and in case of invalid IEC codes, the returns will be rejected. In case of rejection, the dealers can incorporate the correct IEC codes and e-file the return.