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

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.