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TMI BlogTool shifting and excise procedureX X X X Extracts X X X X X X X X Extracts X X X X ..... Hello All, I am having qurey regarding Tool shifting procedure.. If A supplier has developed Tool and using that tool for part production and we have paid the Tool price to the supplier , now A supplier closed buisness and we need to shift this Tool for further production to Supplier B then how excise duty will be handled in this case.. 1. Supplier A submitted Tooling invoice with excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty and we paid full to A and shifted tool to supplier B 2. IS B supplier eligible to charge amortisation for excise duty calculation while producing part from Tool which we shifted to him from Supplier A Waiting for your valuable reply. Thanks Regards, RSK - Reply By Pradeep Khatri - The Reply = First of all you would have prepare a challan by clear mentioning that this particlua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r tool is being shifted from existing supplier to a new supplier. The new supplier will include the amortisation cost of the tool [on the basis of remaining capacity for producing of parts/inputs from such tool] in the assessable value for the purpose of charging Central Excis Duty. No VAT/CST would be payable on such amortisation cost since this value is not treated as flow consideration from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... customer to supplier of parts/inputs. - Reply By Rashmi Keskar - The Reply = Dear Sir, Thank you very much for your reply. Here i would like to ask about one more scenario .. what if , Supplier A issued tool invoice directly to supplier B as consignee and supplier B takes credit for the same. but, we as a purchaser paid supplier A full cost of tool invoice ie basic+Tax+sales tax. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanks Regards RSK - Reply By Pradeep Khatri - The Reply = Even in, Bill to Ship to transactions, you are required to issue a challan for supporting the movement of goods directly to the supplier of inputs/parts. For availing the CENVAT credit, ownership is not criteria, usage of capital are sufficient for availment of CENVAT credit. If your supplier avails the CENVAT credit then you woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d have to capitalized such capital goods net off CENVAT credit. - Reply By Rashmi Keskar - The Reply = Understood Sir, Thank you for sharing knowledge. Thanks Regards, RSK - Tool shifting and excise procedure - Query Started By: - Rashmi Keskar Dated:- 6-2-2013 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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