Excise tax & sales tax registration
madhukar
(Querist) 03 March 2010
This query is : Resolved
Dear sir's,
I am salaried person & willing to do trading in chemicals & speciality chemicals from mumbai.
pl suggest me what type of registration i need to get.
it is necessary to get excise registration & sales tax registration?
if i am buying chemicals from original manufaturere & selling to onther user. then excsie duty & sales tax i am paying on buying material, how can i pass it on to my customer without having excise registration & sales registration.
if without this registration or having any one of this registration it is not possible to do trading, then how to get this registration. what is procedure, how much costelier,time consuming & what are all documents needed.
i understood that small scale manufaturer do not need to pay excise duty. is it applicable to traders also. in that case a original manufacturer who raise the bill put 10.3 % excise to me. how this is adjusted or passed on to my customer.
Guest
(Expert) 04 March 2010
repeated
madhukar
(Querist) 04 March 2010
Dear Sir's,
i have not recdeived the reply. i have put up my query under taxation category & buisiness category, but to both i have recd the reply as repeated query, but not the reply.
i request you please suggest to my query.
tarun goyal
(Expert) 05 March 2010
if your sale is below the limit prescribed under the Central Excise Act,1944. you are a small scale dealer in excisabe goods and you need not take any registration. at the same time even if you pay excise you can not avail cenvat credit for the same. furhter, when you cross the limit for the small scale dealer, you have to go for registration. you can have also visit the nearest excise office in your area. don't fear they will definitely guide you.
tarun goyal
(Expert) 05 March 2010
sorry, there are some typing mistakes. reply after correction is :If your annual sale is below the limit prescribed under the Central Excise Act,1944. You are a small scale dealer in excisable goods and you need not take any registration. At the same time even if you pay excise you can not avail cenvat credit for the same. Further, when you cross the limit for the small scale dealer, you have to go for registration. You can also visit the nearest Central Excise office in your area. don't fear they will definitely guide you.
soumitra basu
(Expert) 06 March 2010
Since you are not a manufacturer but a trader there is no applicability of excise law to you whatever the amount. You have to treat the excise duty paid by you as cost of the goods purchased.
Regarding sales tax you have to take registration under Value Added Tax Act if your turnover exceeds the prescribed amount otherwise you can also take voluntary registration. You can always collect tax from your customer at the time of selling goods. You have to deposit the tax after deduction of the sales tax paid by you at the time of purchase.
