Manufacturing unit can also do trade????

[VASUDEV KUMBHAR]

Sir/Mam,

We are an excise registered manufactuer unit preparation of Isolator and Lab furniture by using MS and SS steel coils. For manufacturing of Lab Furniture we also used Granite/Marbal, Electrical Panal etc as an input.

While manufacturing of Lab furniture we prepared the base structure in our factory but on the surface side our client required Marbal/Granite, Electrical panel and many other items which we purchase from outside as per required drawing and fix it as such and dispatch those furniture to our client. While adding the Granite or many trading material cost our cost of production for individual lab furniture is very high and on that we required to pay the excise duty.

Below are my query against which i required suggestion from you.

1. Can we trade this material and sell it to our client directly by adding profit margin?
2. If yes then any central Excise registration we required to take?
3. Which Invoice to be Prepare?
4. Any intimation required to give the C.Excise Dept.?

Regards

Vasudev Kumbhar

GMP Technical Solutions Pvt. Ltd.

Mumbai

AI Summary

Manufacturing Unit Seeks Guidance on Trading Lab Furniture Materials; Works Contract Act May Affect Sales Tax A manufacturing unit inquired about the possibility of trading materials used in their lab furniture production, which involves adding components like marble and electrical panels. They sought advice on whether they could sell these materials directly to clients with a profit margin, the need for central excise registration, the type of invoice required, and any necessary communication with the Central Excise Department. The response indicated that if trading under a different name or supplying goods separately, the works contract act would apply, impacting sales tax considerations.