C & F godown registration and sales

[venkat eswaran]

Dear all,

We are paint factory mfg industry in Tamil nadu with Excise and sales tax registration. WE would like to open one C & F godown in same state for small qty sales with separate invoice serial no.

For this small qty sales we need only sales tax and Excise not required. Whether it is ok that we can register with sales tax only as addl place of registration and without Excise registration. ?

since our factory removals under Excise only. This applicable to removals from godown also.? One location with Excise and another location is without Excise is possible?

please give suggestions

thanks in advance

Venkat

[Himansu Sekhar]

Sir,

First thing is you are not selling the goods from the factory, rather transferring them to your godown( if it is your godown) where the final removals are done. The Registrations under CEX is required for passing on the duty.

Secondly the duty payment from the factory is provisional and the value of clearance will be determined as per the date and time of removal from the premises i.e Godown where the goods are sold.

Thirdly the commission shown in the C & F account may attract S.Tax. You need to take S.Tax registration

[YAGAY andSUN]

In addition to above reply, if it is a non excise C&F Agent then only VAT/CST Registration as additional place of business would be sufficient. This is subject to nearest point of sale provision under C.E. Laws as point out by Mr. Shah.

[Himansu Sekhar]

I support the view of the respected expert.

[venkat eswaran]

Dear sir,

Thanks for your reply and i would like to tell more details about this.

There is a sale from the factory also big consignments and mfg industries. We like to open godown for small qty sales to shops by C & F agent. Agent is incharge of the godown and sales. We supply to godown from factory from their for small shops despatch will go. Agent has to raise the bill with ser tax we pay comm for that. In that situation Excise registration is necessary ? pl clarify.

thanks and regards

Venkat

[Himansu Sekhar]

If the godown does not belong to you and the agent does not pass on the credit, there is no need to take exciseregn. Only s.tax regn is required.

[KASTURI SETHI]

I support all the views of both experts.

[Nash Industries I Pvt Ltd]

Any decision be taken keeping GST in mind. Whether C&F is really required ?If required, then what now and what after GST.

Agree with other experts that the place of removal shall be the premises of godown (or the C&F) and for the sake of these small consignments, the assessment might be on provisional basis. If the godown is your own (or leased), excise registration is required apart from VAT. If C&F, then Service Tax is payable by the C&F agent.

Please look into the cost aspect of setting up / running C&F or godown vis a vis your sales.

Greater insight is required.

Regards

S.Ramaswamy

Regards

S.Ramaswamy

[Ganeshan Kalyani]

If it only for the purpose of supply to small businesses then excise registration is not necessary. Only VAT/ CST would be required. That to the location can be added as an additional place of business. Thanks.

AI Summary

Excise registration: required at a manufacturer-controlled godown; C&F agents need service tax while VAT suffices for non-excise godowns. Excise registration for a C&F godown is required if the godown is owned or leased by the manufacturer and removals to customers occur from that premises; removals determine duty liability and provisional assessment may apply. If the godown is operated by a non-excise C&F agent who does not pass on credit, excise registration need not be taken for the godown, but VAT/CST registration as an additional place of business is required and the C&F agent must obtain service tax registration for commissionable services.