EXCISE DUTY TRADERS ISSUE

[subham kumar]

Hello

Please solve the query related to CENVAT

Like we are trading & processing company (Consider B) of good, we buy goods from Manufacturer (Consider A) bring to our Godown/premises and sell to Buyers (Consider C).

Now Manufacturer Bills us with 2% of Excise duty on good.

Like ₹ 100 + 2(2% of Excise duty) = 102

Now Question is can B pass excise duty credit to C?

If yes how to bill for C? If B wants to sell at Rs- 110 (excluding tax)

Does B needs to register for Cenvat, if yes then how?

Thanks In advance , please reply with if you have full knowledge.

AI Summary

Trading Company Must Register to Pass Excise Duty Credit; 2% Credit Passed Only for Manufacturer's Duty Paid A trading and processing company (B) inquired about passing excise duty credit to buyers (C) after purchasing goods from a manufacturer (A) who charges a 2% excise duty. The responses clarified that B must register as a dealer under central excise to pass on Cenvat credit. B can either obtain a Central Excise Dealer registration to issue a Cenvat invoice or, if goods are shipped directly from A to C, C can avail the credit based on A's invoice. B can sell goods at 110 but can only pass on the credit of 2, the duty paid by A.