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Passing of Additional Duty

K Vinod Kumar (Manager-IT) (43 Points)

09 June 2009

Sir,

I need your advice on passing of Additional Duty(paid during import). I'm a manufacturer (central excise regd.). I procure my raw materials both locally and by imports. I also trade my raw materials. Kindly advice on the Invoicing procedures for trading of these raw materials. Can I pass the Addl. Duty to others? Do I have to show it in my Invoice separately? Kindly advice.

Regards

Vinod

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4 Replies

Rajeev Verma (Advocate & Consultant) (30 Points)
Replied 12 June 2009

Dear Mr Vinod,

Definitely You can pass on the AID(Additional Import Duty 4%) paid on your import. For this you will have to take registration under Central Excise as a DEALER.

Thanks

Rajeev Verma

Advocate & Consultant

Central Excise, Customs & Servcie Tax

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Vaibhav Agrawal (MD) (58 Points)
Replied 14 June 2009

Dear Mr Vinod,

I agree with Mr Rajeev, you can definitely pass AID to your buyers when you trade your raw material. However you if you are basically a mfr and regd as mfr with central excise, there is no need for excise trader registration.

Please remember you have to clearly show all details of your purchase bill/import bill of entry, along with seperate amount of excise duty, AID, and education cess on your invoice, which will be linked to the qty of your bill of entry.