Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

Dealer invoice excise duty..?

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 ..?



Former Member
Former Member replied


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.



0 View this answer in context
Not what you were looking for? View more on this topic or Ask a question