Excise registration procedure for small unit
madhukar
(Querist) 23 July 2011
This query is : Resolved
Dear Sir,
I wish to start small buisness unit. i knew how to get the CST/VAT registraion. my problem is excise duty loss. if i purchase chemical at basic price Rs 100 per kgs. it comes with tax invoice & i have to pay Rs.112 per kgs & CST upon it. (now my selling basic price is Rs 105 & i can not pass on excise to seller as i dont have excise reg. therfore i incurred loss of Rs. 8 per Kgs, if i can get exsice reg. i can pass on this to my seller.) as a samll manufacturer what is procedure to get the exicise reg. pl tell me in detail. or else please guide me how to deal with this situation.
R.Ramachandran
(Expert) 24 July 2011
You have to indicate where are you located.
You also have to indicate whether you are going to start or already started your business.
Please also indicate whether you are a simple trader, or a manufacturer?
If you are a manufacturer, please indicate whether the goods that you manufacture are liable to excise duty or not?
madhukar
(Querist) 24 July 2011
Dear Ramchandran sab, I am located at mumbai & my potential customers are all over india. i have to start the business.i have identified the market. i am salraied perosn but willing to begin the trading first & manufaturing subsequentely.good are chemicals & comes under excise duty. pl guide me
R.Ramachandran
(Expert) 24 July 2011
You can get yourself registered with the Central Excise Authorities as "First hand /Second hand Dealer". Such a registration would entitle you to pass on the Excise Invoice to the prospective buyer. The prospective buyer would be in a position to take Cenvat Credit of the Excise Duty shown on the invoice. For this, you have to approach the jurisdictional (under whose jurisdiction your Premises falls) Centrla Excise Authorities. After registration, you have to comply with all the rules and regulations and maintain all the books of accounts etc., as prescribed under the Central Excise Rules, submit returns etc.
M V Gupta
(Expert) 24 July 2011
If u are thinking to start ur business at Mumbai, u will have to register with the commissionerate of central excise, Mumbai. Pl go to the official website of Central Excise, Mumbai to get the necessary information about the location of the commissionerate in whose jurisdiction u fall.
Amit Soni
(Expert) 24 July 2011
If your turnover is less than 1.5 crores for the year & it will never reach this extent in any past f.y. than no need to be registration with Central Excise, in this case your purchase cost will be 112 rs. per kg & you can prepare a bill adding you margin & further expenses in your purchase cost. But the buyer shall not be eligible for CENVAT credit.
madhukar
(Querist) 25 July 2011
Dear sir, as a trader if i take only cst/vat no. then am able to act first hand/second hand dealer?.if yes then in my invoice orginal manufaturer name required to be mentioned? or for acting as first hand/ second hand dealer i need to get Excise registration? my buyer should not know the name of original manufacturer, i want to sell the product as under my own brand name though i am sourcing it form original manufaturer & giving it to my customer. my worry is that customer should not know name of my supplier. how this can be possible. can you please let me know.
VIKAS RAJ CHHAJER
(Expert) 25 July 2011
Dear Sir,
there is a two type of procedure so if you need proper help then contact with me onmy number 9328010898 i am excise cosultant and doing laisiing with excise deptt.
vikas
