EXCISE DUTY TRADERS ISSUE

[Asked by Guest]

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

Cenvat credit transfer: dealer registration permits passing credit, or consignee may claim credit on manufacturer's invoice.
If the intermediary obtains Central Excise dealer registration it may issue a Cenvatable invoice to pass the Cenvat credit availed from the manufacturer to the buyer; the credit is limited to the duty actually paid by the manufacturer. Alternatively, where the manufacturer dispatches goods direct to the consignee with bill to the dealer, the consignee may claim credit on the manufacturer's invoice without the dealer being registered.