Paras (Mcom,CA Final) (122 Points)
05 July 2011Guys ,
Trading firm which purchase Goods on which excise duty is levied. Now the question is can the trading firm recover the excise amount from the customer ??......i know he can't charge Excise duty as he is not a manufacturer . But is there any method or form filling for recovering or charging such amount to the customer.Experts Please advise.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 12 July 2011
your trading invoice would be inclusive of all taxes + your profit. + vat/CST if applicable.
Paras
(Mcom,CA Final)
(122 Points)
Replied 13 July 2011
you mean excise duty too??......can he levy excise duty??...........he is unregistered under excise!
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 13 July 2011
trader is not eligible to charge excise ............but see one illustration
goods putchased by trader, and onward sale to 1) excise registered dealer 2) non excise dealer
basic value 10000
escise ..........1030
------------------------
.....................11030
CST ......... 221
freight ...........400
------------------------
total cost ...11651
now the dealer want to sale with 15% margin over cost
1) to non excisable buyer ........................ 11651*115/100 = 13399 + VAT or CST as applicable
2) to excisesable buyer ..........................same as above
however if the dealer is under excise registration as "dealer" then he will issue cenvatable invoice, for 1130 alongwith the commercial invoice, and the buyer is entitled to take input credit of 1130 under his manufacturing process.
for a non excisable buyer, the excise duty is non eligible for input credit, but the vendor will charge 11399+ applicable vat or cst to him.
excise is charged at manufacture point, and dealer has nothing to do about it, he can mere pass it to next manufacturing buyer by maintaining dealer registeration for pass on the " duty paid by manufacturering unit" to eligible manufacturing dealer ,
eligible manufacturing dealer has to communicate the willingness for cenvatable invoice from seller, furnishning him 1) Central Excise registration number 2) Range 3) division 4) commissionarate of self to registered excise dealer ( vendor)
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