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

Excise on branding

Anup Kumar (SE) (33 Points)

26 August 2009

we are a trader and want to market pharma products by our own brand name. But the manufacture is a small tiny enterprises and not willing to get registered in excise.

My question :

Is that any way to save the excise duty by writing our name as a (distributed by) or in (technical collabration with)

writing (Marketed by) attract excise duty to the manufacture. plz help

Name of manufacture is mandatory written on pharma products.

Reply
Follow
Share

5 Replies

shrikant (self ) (65 Points)
Replied 26 August 2009

I DIDN;T GET full info from ur query.

but presume that-ur product is of ur own brand and not of any other manufaturer. Then u need not pay excise upto specified limit of turnover (SSI exemption limit).

If u r using somebody elese's brand name. then SSI exemption limit not available....however, if ur status is only distributorship then question of PAYING EXCISE DUTY in the capacity of MANUFACTURER does not arise.

Upgrade to CAclubindia Pro. Subscribe Now!

Anup Kumar (SE) (33 Points)
Replied 26 August 2009

Originally posted by :shrikant

I DIDN;T GET full info from ur query.

but presume that-ur product is of ur own brand and not of any other manufaturer. Then u need not pay excise upto specified limit of turnover (SSI exemption limit).

If u r using somebody elese's brand name. then SSI exemption limit not available....however, if ur status is only distributorship then question of PAYING EXCISE DUTY in the capacity of MANUFACTURER does not arise.

I want to write my name as "distributed by" or "marketed by" on the bottle. The brand is to be registered under my name in pharma dep.

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 27 August 2009

If such things is in your name, the tiny manufacture has to pay duty.

Anup Kumar (SE) (33 Points)
Replied 28 August 2009

Originally posted by :Rajesh Kumar
"	If such things is in your name, the tiny manufacture has to pay duty.	"

Dear sir,

What is the position if the brand name is owend by manufacturing unit and we just write our name "iN TECHNICAL COLLABRATION WITH" or "DISTRIBUTED BY"

shrikant (self ) (65 Points)
Replied 28 August 2009

Hi,

i think ur last query is gud one .

What is the position if the brand name is owend by manufacturing unit and we just write our name "iN TECHNICAL COLLABRATION WITH" or "DISTRIBUTED BY"

if "ABCD" IS THE brandname of manufacturer "M", then if u wirte your name against phrase ""iN TECHNICAL COLLABRATION WITH" or "DISTRIBUTED BY", in such situation no need for "M" to get registered untill he crosses SSI exemption limit.

[presumed that "M" does'nt take cenvat credit facility and the exemption is available to the goods manufactured by "M". Also most importantly "ABCD" is not ur brandname]