Payment of duty and then availing credit

[chaganti srinivas]

Dear Sirs, 1) Is there any provision for transfering the finished goods on payment of duty from one registered premises to another registered premises on payment of duty and avail credit on the second unit for re-sale from there at higher price.

[Rama Krishana]

Credit is not allowed in case of trading of goods. In case of trading, you can pass on the duty. In case the goods are sold by the other unit of the same manufacturer, duty is to paid on the higher sale price on which the goods are being sold actually. So plan carefully in advance otherwise you will be at loss.

AI Summary

Credit restriction: input credit not allowed for trading; duty must be paid on the higher actual resale price. Input credit is not allowed in case of trading; where goods are traded the duty paid cannot be taken as credit and duty is generally passed on. If goods are sold by another unit of the same manufacturer, duty must be paid on the higher actual sale price on which the goods are sold; plan such transfers carefully to avoid loss.