Procedure - issue invoice

[chaganti srinivas]

We will starting manufacturer's depot's at various places. i need clarification on the following points. 1) We will be charging excise duty on the invoices issued from mfg point to our Depot, further depot will raise invoice on dealer with same price what we are charging after considering the discounts, which will be shown on the invoice - is this procedure is acceptable?. 2) is it necessary to register depot with central excise, where cenvat invoices are not issued from the depot to the dealer.

[Guest]

If your buyer who is purchasing goods from depot is not insisting the excise invoice or dutiable invoice, there is no need to get central excise registration number at depot. Further as per your query, if depot sale price is not more than price at which factory is paying excise duty, there is no problem at all. The procedure is acceptable.

AI Summary

Excise registration requirement: depots need not register if they do not issue excise invoices and buyers do not demand them. If a depot does not issue excise or CENVAT invoices to buyers and buyers do not insist on such invoices, the depot need not obtain a separate central excise registration. Charging excise duty at the factory on invoices to the depot and having the depot invoice dealers at the same price (allowing disclosed discounts) is acceptable provided the depot's sale price does not exceed the price on which excise duty was paid at the manufacturing point.