Suppose in Last case, Manufacturer 1 sells to Dealer who is registered in Excise(called First Stage Dealer) who sells to Manufacturer 2

Manufacturer 1---->FSD---->Manufacturer 2 


Assuming FSD does not earn any Profit and works at No Profit no loss

In this case,Excise will be charged as follows


Sale by manufacturer 1 to Intermediary First stage dealer who earns no Profit - Concept of First Stage Dealer

What is Excise Duty Payable in this case by all 3?

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What will Manufacturer 2 Prefer now

Purchase from Manufacturer 1


Purchase from First Stage Dealer?

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Why do Dealers get themselves registered in Excise?

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  1. Tax Practical
  2. Practical Excise
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at .