New Trader

[Asked by Guest]

Dear Sir/Madam,

Regards to all.

I am a new to Chemical trading business, Specifically Solvents.

I want to know about Excise duty. It is already in process.

How to charge excise duty and how to forward the same etc.

Your response will be highly appreciated.

Thanking You,

Pratik S Jadav

+91 9979767043

[Rajagopalan Ranganathan]

Sir,

The manufacturer of the excisable goods will sell the said goods on payment of duty under his invoice. You take the duty paid by your supplier as credit. You register yourself as first stage dealer under rule 9 of Central Excise Rules, 2002 and then by issuing cenvatable invoices pass on the duty paid on excisable goods sold by you to your customer.

[Ganeshan Kalyani]

Sir, though RG23A / C, Part I & II is not statutory requirement anymore but Companies are still maintaining it for clearity and control. Excise duty paid on purchases in a Cenvat credit which can be set of against excise duty payable. A proper accounting to establish the correct compliance is required. Thanks.

AI Summary

Cenvat credit entitlement enables dealers to claim duty paid on purchases and pass it forward via cenvatable invoices.
Manufacturers sell excisable goods on payment of duty and purchasers may take that duty as Cenvat credit, which can be utilised against excise liability by issuing cenvatable invoices. Traders should register as first stage dealers under rule 9 of the Central Excise Rules, 2002 and maintain proper accounting; RG-23A/23C records, while not statutory, are often kept for clarity and control to substantiate credits and set-off.