amortization cost-reg

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..... amortization cost-reg
Query (Issue) Started By: - Ramakrishnan Seshadri Dated:- 12-6-2015 Last Reply Date:- 13-6-2015 Central Excise
Got 4 Replies
Central Excise
We request the experts to clarify my doubt. We are going to send some mould to our jobworker under jobwork challan. He will maufacture the product and send to us by paying excise duty. After receiving the product we will aga .....

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..... in use it for manufacturing our final product and pay excise duty and clear the same. Now our question is whether amoritzation cost has to be charged by the jobworker.since the product is an intermediate product. Kindly clarify. Thanks & Regards, S.Ramakrishnan. Reply By Mahir S: The Reply: Sir, The question of amortization cost shall not arise in your above case. Reply By Ramakrishnan Ses .....

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..... hadri: The Reply: Dear Mahir Sir, how you are saying that amoritzation cost will not arise in our case? Thanks S.Ramakrishnan Reply By Mahir S: The Reply: Sir, Amortization cost is required to be added/charged only when the moulds and dies are supplied free of cost by the buyer (customer) himself, and when used for the manufacture of finished goods to be to the said buyer (customer). In yo .....

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..... ur case, the moulds are not supplied free of cost by your buyer of the finished goods. Hence, the question of charging amortization cost by your job worker or even your charging of the amortization cost from your buyer (customer), does not arise. Further, such moulds which you have got manufactured from the job worker are not your intermediate products but your own capital goods. Reply By Mahir .....

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..... S: The Reply: Amortization cost is required to be added/charged only when the moulds and dies are supplied free of cost by the buyer (customer) himself, and when used for the manufacture of finished goods to be SUPPLIED to the said buyer (customer).
Discussion Forum - Knowledge Sharing .....

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