Excise duty gate pass

[Asish Kumar Nath]

Dear Expert,

We are a trading company and having excise registration. Generally we import material and trading the same in India. In this case we pass excise duty and special duty which we actually paid to govt. through excise gate pass to our customer. Here  actually paid amount and pass out remain same.

In same manner when we purchase 10 items @ 100.00 each material from Indian manufacturer they charged excise 12.36% on product valu  say product value Rs.1000.00 + Excise @ 12.36%=123.6+ cst@2% Rs.22.48= total Invoice Value Rs.1146.08.

Now we shall sell the same quantity to our customer @ 150.00 each on 2% cst and customer asked for excise duty gate pass. How we raise invoice on them and which amount we should pass to them? Is it Rs.123.60. If it is then the customer may know the our bying price on back calculation. Please help me..........

 

Asish Kumar Nath

[YAGAY andSUN]

You would have to get yourself registered with Central Excise Department as First Stage Dealer or Second Stage Dealer, if it is a routine practice.  Otherwise, you may remove the goods as such on an Invoice by charging the equivalent duty on such goods.

[NEERAJ KUMAR, RANCHI]

Dear Mr Nath,

 Your query is not easily clear. If you are having a central excise registration as said in your query, you must be issuing central excise invoice under rule 11 of central excise rules 2002, in that invoice you must be indicating the cenvat credit. Like wise you need to do in case of domestice procurement of goods and removal thereof. Customer may know the ex factory price of the goods as felt by you. It is absolutely correct. But you can pass on only such duty of excise as cenvat credit as has been charged from you from your supplier/manufacturer in his invoice. You need to indicate the no. of original invoice also which was issued to you by the manufacturer.

If your query is related to something different, which I failed to understand, please come back and mention more specifically.

[Guest]

Yes. You are registration with excise as dealer you may pass duty as per you receied.

 

Manoj Raut

[Guest]

i am work with trading and MFD company and i will issue invoice at below detail if i have that issue

10 PC             Rate 150             1,500.00

                        CST @ 2%              30.00

Excise / Spe. Duty Transfer        123.60                        (123.60/10PC = 12.36 Per PC)

Total Bill Amount                       1,653.60

As per Rule we cant tranfer extra/less duty o trading bill. as per calculation duty charge on QTY base only

H.K. Goel

 

 

[Guru Murthy]

Dear Ashish,

If you are a dealer, then you have to pass on the same duty at whch you have received the material. you need not show your buying price. You can add your profit and other expensed to the original buying price and cst separately. you can show the duty passed seperately. Then your customer cannot know your buying price.

 

GURUMURTHY

AI Summary

Trading Company Seeks to Protect Buying Price by Registering as Dealer; Issues Excise Invoice Under Rule 11 A trading company with excise registration inquires about issuing an excise duty gate pass when selling goods. They face a challenge with customers potentially discovering their buying price through back calculations. Experts suggest registering as a First or Second Stage Dealer with the Central Excise Department. They advise issuing a central excise invoice under Rule 11, indicating CENVAT credit, and passing on the same duty received from suppliers. It is recommended to separate the duty from the buying price and add profit and expenses to prevent revealing the original cost to customers.