Procedure to send tools and dies into vendor for production, Central Excise

[Sanjeev Kashyap]

Can some one help me to tell the procedure for sending Tools and Dies into vendor premises for production, without any cost involved as RGP !!

 

Thanks,

Sanjeev Kashyap

Posts / Replies

[Pradeep Khatri]

Under Rule 4 5(a), you can send the tools and dies to the vendor premises for production of inputs/components on your specification.

The cost of tools and dies should be amortises in the assessable value of the input/components at the time of removal of the same from the vendors' premises.