Trading Purchase of Idetical Goods for Trading Sale, Central Excise

[RAM SHARMA]

Dear Experts,We are manufacturer and registered in central excise. Can we purchase Identical goods as a trading purchase for trading sale. Please advice.Thanks

Posts / Replies

[Pradeep Khatri]

Dear Ram,

Earlier there was a requirement to get permission from the Jurisdictional Commissioner/Asstt. Commissioner/Addl. Commissioner or from Deputy Commissioner of the Central Excise for procurement of identical goods for trading purpose.  But there is no need for the same.  You would have to do following activities,namely:-

1. You would have to get the Trading Registration Certificate from Central Excise Department.
2. Separate maintenance of books of accounts.
3. Remarking of area intending for trading activities.
4. Maintenance of Statutory Records as prescribed under CEA and Rules made thereunder.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

[Madhukar N Hiregange]

Normally trading permission is not provided for the same premises. Physical separation could be insisted on especially when credit is being passed on.

At the time of audit there maybe more srcutiny.