Master TDS & TCS Provisions with Critical Issues. Register Now!

Excise duty chageable by second stage dealer.

ashok kumar baranwal (assistant executive engineer) (28 Points)

26 February 2011

Now the dealer (B) is asking 10.3% Excise duty on orderd value besides Jharkhand state VAT. The invoiced is raised by the dealer not by the manufacturer.

Kindly help me in finalising their bill. whether the excise duty being asked by the dealer is correct. The consignee for the manufacturer (A) is the dealer & not us where as we are the consigneee for the dealer.

Whether the claim of excise duty by the dealer is justified? Please help in redressal of dispute.

Reply
Follow
Share

1 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 26 February 2011

Originally posted by : ashok kumar baranwal

A manufacturing company (A) located in Kolkata was contacted for supply of material . The company redirected our request to their dealer at Dhanbad (B) in Jharkhand. & the order for supply of material was placed with the said dealer.

Now the dealer (B) is asking 10.3% Excise duty on orderd value besides Jharkhand state VAT. The invoiced is raised by the dealer not by the manufacturer.

- Dealer is entitled to issue the invoice of dealer only, based on the manufacturer invoice only, and pass on the duty to buyer, dealer can not charge excise of its own.

Kindly help me in finalising their bill. whether the excise duty being asked by the dealer is correct. The consignee for the manufacturer (A) is the dealer & not us where as we are the consigneee for the dealer.

- get in connection with manufacturer, and check whether manufacturer has charged the duty or not,
Whether the claim of excise duty by the dealer is justified? Please help in redressal of dispute.

Manufacturer has charged the excise duty and the same is not mentioned in your order, hence the dealer got the excise duty charged from manufacturer (A) to dealer (B), now dealer can issue u invoice with duty pass on, but the gross amount would be inclusive of excise duty ( VAT should be extra payable)