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Regarding input tax credit on closing stock

prashant (AM) (67 Points)

12 April 2017

Hi, i am a mfg and i usually move my goods from my mfg plant to our cnf located in different locations on PAN India basis by charging Excise duty on the product only. From where we billed to local dealers by charging local VAT on it.

My query:

1. On 01/07/17 i can take the credit on the available closing stock of my these PAN India cnf on the basis of those stock in excisable invoices. Is it?

2. As these cnfs are registered in vat only and the concerned excise duty is the cost for them so how could the dealers are become liable to take credit of excise duty included. Suggest some alternate way which will help them to take the credit

Regards

Prashant

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5 Replies

Chetan Agarwal (Partner) (24 Points)
Replied 12 April 2017

you can register all your cfa as first stage dealer.

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prashant (AM) (67 Points)
Replied 12 April 2017

Yes.... But how dealers can take the credit when they are not register under central tax regime

prashant (AM) (67 Points)
Replied 12 April 2017

As per new rule if any registered dealer are not registere under central tax than in such case he can avail only 40% of credit and rest 60% would be his cost

prashant (AM) (67 Points)
Replied 12 April 2017

But we dont want to affect our dealers so in such case case either we reimburse the ost due to such 60% else we tell them to take reg under central excise which practically is not possible. Please suggest me.

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 12 April 2017

All your C&F agents shall be registered under GST. Even if you have your own depot, it shall also be registered in GSt and shall be treated as distinct person. From 1st July onwards you shall be charging IGST when you will send material to them. They shall take credit of that IGST. That IGST credit can be used to pay IGST or CGST/SGST as required. Once GST is implementaed every supplier shall be able to take credit of all duties, central or state.