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Excise duty pass on as dealer

Ankit (efv) (26 Points)

22 January 2017

I am a trader and registered with excise under dealer. I purchased goods from manufacturer in Excise of 6% and further sale to manufacturer. How it will be pass on and under which section.

Also kindly explain the following case:

I purchased goods from 'A' in basic price Rs. 100 + (Excise 6%) Rs. 6 + (Vat @ 5%) Rs. 5. Total Rs.111. Further I sale this one to 'B' at base price of Rs.120 + (Excise Pass on) Rs. 6 + (Vat @ 5%) Rs. 6 = Total Rs 132. Whether this one correct or not. If Yes please let me know the sections and notification also how will I account this one. Also, process to maintain this.

Regards

Ankit

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Mir Irshad Ali (Partner) (192 Points)
Replied 28 January 2017

As a dealer registered with Central Excise you are entitled to pass on the Central Excise/CVD/SAD which has been paid by the Manufacturer/importer.

The dealer is not liable to pay any duty, he has to only pass on the duty paid per unit, hence the price at which the goods are sold by the dealer is not relevent.

The sale of goods to 'B' at base price of Rs.120 + (Excise Pass on) Rs. 6 + (Vat @ 5%) Rs. 6 = Total Rs 132 is correct.