Cenvat Credit in First Stage Dealer

[Raja krishnan]

Dear Sir,

One Central Excise Registered First stage dealer, Purchased Central excise goods from the Manufacturer & collected the Cenvat Credit, in this status, as on date how to pass on their Cenvat Credit which are collected from the Manufacturer to Second Stage Dealer through them sales invoice ..Please clarify the method of sales with good example.

[Ganeshan Kalyani]

Sir, you can fix your selling price inclusive of CENVAT amount that was paid to manufacturer while purchasing and by enclosing the manufacturer sale invoice along with your sale invoice. Your customer will take credit based on the invoice attached by you along with the sale invoice. TThanks.

[KASTURI SETHI]

Sh.Raja Krishnan Ji,

It is natural that amount of Cenvat Credit to be passed on is to be mentioned separately on the invoice. Take care that amount passed on must not exceed the amount of credit received/entered in your RG 23 D Register.

AI Summary

Cenvat credit transfer: first-stage dealers must show passed credit separately and attach manufacturer invoice for recipient credit.
Cenvat credit collected by a first-stage dealer may be passed to a subsequent dealer by showing the credit separately on the sales invoice and attaching the manufacturer's invoice; the amount passed must not exceed the credit actually received and recorded by the dealer in its credit register.