TaxTMI 
TaxTMI 
Trading Purchase of Idetical Goods for Trading Sale
05 Jun 2014 
2 Replies 
1609 Views Asked by
Purchase of identical goods for trading sale requires trading registration, separate records, and possible physical separation.
Purchase of identical manufactured goods for trading sale by an excise-registered manufacturer requires obtaining a Trading Registration Certificate, maintaining separate books of accounts, remarking or designating the trading area, and keeping the statutory records prescribed under the Central Excise Act and rules. Physical separation of manufacturing and trading operations may be required, especially when input tax credit is passed on, and the arrangement is likely to face heightened scrutiny at audit. (AI Summary)
Purchase of identical manufactured goods for trading sale by an excise-registered manufacturer requires obtaining a Trading Registration Certificate, maintaining separate books of accounts, remarking or designating the trading area, and keeping the statutory records prescribed under the Central Excise Act and rules. Physical separation of manufacturing and trading operations may be required, especially when input tax credit is passed on, and the arrangement is likely to face heightened scrutiny at audit. (AI Summary)
Dear Experts,We are manufacturer and registered in central excise. Can we purchase Identical goods as a trading purchase for trading sale. Please advice.Thanks