Passing of Cenvat credit

[pardeep bisht]

upto which stage of dealer we can pass on the cenvat credit

[Surender Gupta]

As per the scheme of central excise read with cenvat credit, in case of goods domestic goods cenvat credit can be passed by the first stage dealer and second stage dealer after the manufacturer. Similarly, in case of Import, the duty of excise can be passed on by the first stage dealer and second stage dealer after the importer. In other words cenvat credit can be passed by two dealers in addition to original source.

[RadheyShyam Mangal]

upto second stage of dealer

AI Summary

Cenvat credit transfer permitted through limited subsequent dealer stages after manufacturer/importer under excise rules. Cenvat credit originates with the original source-manufacturer for domestic goods and importer for imports-and may be passed downstream; the scheme permits the original source to pass credit and allows two successive dealers (first and second stage dealers) after the original source to transmit that credit in the distribution chain.