Dealer invoice excise duty..?

[Former Member]

Hi all

Can anybody explain me about , wht is dealer invoice with excise duty.

How it wil difffer from other invoice ..

What are the other excise invoices are there while purchasing ..?

Thanks

sap-mm

[Former Member · Accepted solution]

HI

To breif you, Dealer's are not suppose to avail the CENVAT credit they have paid to vendor of the goods at the time of purchase, reason behind is unless and untill you are doing any value addition in the production process or using the goods in your production process you are not eligible to take to CENVAT credit of the duties paid (As per Excise Law).

Now comig back to your question, since the delear is not taking any CENVAt credit therefor he will pass on the duties to us using the delear invoice which will include the name of vendor who has sold the goods to him and the duty amount which the vedor had charged to the Dealer. So the whole scenario is to pass the duty charged by the original vendor to delaer and then to us.

Please Note: This duty will not change even if the Dealer will add his margin (Gains) on the rate of the goods.

Hope it clears your doubt...

The other form of invoices are Vendor invoice which we get direct from vendor in procument cycle.

Regards,

Sujoy

[Former Member · Accepted solution]

Hi Mr.Sujoy

Thanks for ur clear explanation.

Kindly can u explain me what about the duty values in delear invoice.

Because , delear he is going to purchase from manufacturer or producer.

So value of duty will change while delear sells the same goods, he 'll selling goods with some profit.

So my question is , in this case what is value we r going to catupturs.

Thanks

sap-mm

[Former Member · Accepted solution]

HI

Thats the beauty of Indian Taxing procedure, he cant charge the duties on the basis o his selling price, the duties will be charged or paid by us to him what ever he had paid to the manufacturer of the goods, the same will be passed on to us.... Futhermore we can also take the CENVAT credit of the same in our excise registers for the same amount of duties that we will pay to Dealer>>>Which he had paid to the original manufacturer>>>

No extra duties will be paid by us...

Regards

Sujoy

[Former Member]

anybody gin som input