Trading from Manufacturing Units

Page no : 2

H.A.UDAYA (CEO) (21 Points)
Replied 01 March 2011

Dear Sir,

Is there anything like excise registration for trading ?

We would like import certain products, stock and sell them.

If we get ourselves registered under excise, can we get cenvat credit and then charge excise duty in our invoice ?

 

Udaya


U S Sharma (glidor@gmail.com) (21063 Points)
Replied 01 March 2011

Originally posted by : H.A.UDAYA

Dear Sir,

Is there anything like excise registration for trading ?

We would like import certain products, stock and sell them.

If we get ourselves registered under excise, can we get cenvat credit and then charge excise duty in our invoice ?

 

Udaya

Dealer registration will be required. 

you can not take cenvat credit as dealer, but you can pass on the duty charged on imported goods (CVD portion) to your excise registered buyers. 


v.ravi (manager commercial) (26 Points)
Replied 25 January 2012

we are the manufacture of flanges pipe fittings falling chapter 73 . we would like to trading the same products  by purchasing from exempted units or traders to compete with others . we would like to know whether we can  use same premises with out any  demarking area or specify the procedures for doing the same with out any problem 

 

ravi


Ashwani jindal (Owner) (25 Points)
Replied 02 June 2012

We are chemical manufacturing unit , doing purification of different chemcials by process of disstillation (  Distiilation is physical process where nature of inputs does not change but purity level changes) Distillation process uses electric power and fuel and labour.if we sale this material after purification by same name then

1. Does it amounts manufacturing and attaracts excise duty ( As decided by Court S.d fine Chemicals VS CCE )

2. if we mix this purified item with other purified item physically without any use of power ( Both components donot react with each other but their name is changed to general name  "Thinner" or other name . Does it amounts manufacturing.?kindly mention any circular or Notification

Kindly reply :      jaibharatind @ yahoo.com

Thanks


Gaffar Sayyad (Admin) (21 Points)
Replied 03 March 2014

hello sir, we are manufacturer and we had trading registration also.

but i have one doubt that is, if we purchase goods wiht basic Rs.88.00 + excise 12.00=Rs.100.00 and then we sell the same goods with our profit ?. shall we take excise credit of Rs.12.00 ?

please clarifty this point ?

 



Rohaan Singh (Director) (21 Points)
Replied 01 May 2015

Hi,

We are facing a similar issue here at our company in Punjab. We are a Steel Wire processing unit (Steel wire is made from Steel Wire Rod). However, we have some customers who buy Wire Rod (just the raw material) from us.

Earlier we had two separate registrations (one for trading and one for manufacturing) but for the same premises and as a result it was a lot of hassle and it was difficult to explain this to the excise officials. So from FY 15-16 we closed the trading registration and started buying all the raw material in our manufacturing unit. Now we are afraid if we could sell >50% of raw material as such without processing and sell the remaining material as processed wire ?

Please help us on this, any reference to similar cases/situations faced by other would be very helpful.

Thanks 


Vinay Kumar (executive) (21 Points)
Replied 17 December 2015

Sir,

We are a Trading company of agro products. How can we manufature/process agro products. Is there any provision to do such thing?

Vinay


Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 17 December 2015

A manufacturer can trade in the inputs used in manufacture within the same premises. He needs to remove the inputs on payment of equivalent duty as paid / taekn credit even if the price is higher or lower. No permission reqd. 

If manufactured billets are being sold there is again no issue.

However if billets are procured from others and sold, it maybe advisable to apply for separate traders and have some physical separation as well to avoid charges of clandestine removal.


Dattatri (Tax consultant) (121 Points)
Replied 21 December 2015

We are registered under central excise as manufacturers and purchased 1 motor from a registered manufacturers. Now I have a doubt on this transaction
 
1. Can a manufacturer registered under excise sell the input (imported) items (as is sale) under manufacturing bill without taking dealer registration?
 
2. Can a manufacturer charge addl duty @ 4% (on basic+ed+cess) in his bill for the input items sold by him? Even though the items sold is imported by him, but since he is not a dealer, (he is a manufacturer) how can he charge 4% addl duty?
 
3. Also the Addl duty has been charged is 4% on the assbl value + ed+ ed cess. Normally a dealer is passing on the Add duty only to the extent of what ever the Addl duty paid by him on the product at the time of import.
 
4 separate series of GRN and sales invoice required to be maintained for trading and manufacturing itesm? as a dealer how the duty to charged in the bill? at rates as per tariff or passing on of input duty?
 
5. How the return to be filed for both activity with single (manufacturing licence)?

R P Ananthakumar (Sr. Officer - Central Excise/Cash)   (514 Points)
Replied 21 December 2015

Originally posted by : Dattatri

We are registered under central excise as manufacturers and purchased 1 motor from a registered manufacturers. Now I have a doubt on this transaction

 

1. Can a manufacturer registered under excise sell the input (imported) items (as is sale) under manufacturing bill without taking dealer registration?

Yes.  It is possible.   

2. Can a manufacturer charge addl duty @ 4% (on basic+ed+cess) in his bill for the input items sold by him? Even though the items sold is imported by him, but since he is not a dealer, (he is a manufacturer) how can he charge 4% addl duty?

In this case you will not charge addl duty.  You will reverse the duty what you have taken at the time of purchase.

 

3. Also the Addl duty has been charged is 4% on the assbl value + ed+ ed cess. Normally a dealer is passing on the Add duty only to the extent of what ever the Addl duty paid by him on the product at the time of import.

You reverse the duty what you taken at the time of inward/import

 

4 separate series of GRN and sales invoice required to be maintained for trading and manufacturing itesm? as a dealer how the duty to charged in the bill? at rates as per tariff or passing on of input duty?
 Not required.  It you want to separate you may go for permission to use.
 

5. How the return to be filed for both activity with single (manufacturing licence)?

This is one time.  You can mention under misc.

 



kishor murasiya (accountant) (21 Points)
Replied 14 May 2016

DEAR EXPERT,

WE HAVE MANUFACTURING UNIT OF FITTING,

WE ARE TRADING PIPE WITH EXCISE AND SALE WITH EXCISE 

BUT  WE ARE GARDEN PIPE PURCHES IN VAT (NOT EXCISE) SO 

WILL WE SALE GARDEN PIPE IN WITHOUT EXCISE ?

HOW LIMIT TRADING FOR MANUFACTURING UNIT ?

THANKS 


Akash Loomba (2 Points)
Replied 01 December 2016

Sir,

I am a manufacturer of power and distribution transformers and i also have the import export code for that unit,now i want to start trading of consumer electronics like power banks usb etc,can i use my manufacturer IE code and import consumer electronics ,and one more question that if i can do so will i need a separate service and sales tax registration for this product ?

 


rrshukla (commercial officer) (29 Points)
Replied 14 February 2017

Respected Sir

Whether any provision of laws  for allow trading activity in Mfg unit 

Please let me so that I can submit same to department 


rrshukla (commercial officer) (29 Points)
Replied 14 February 2017

Respected sir Any provision in Central Excise Laws ??? Please


rrshukla (commercial officer) (29 Points)
Replied 14 February 2017

Respected sir Any provision in Central Excise Laws ??? Please



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