TMI Blogtransfer of capital goods from unit 1 to unit 2X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, I am having two units having different excise number but under same range producing similar products. I want to transfer one old machine running in unit 1 to unit 2. Can i transfer the same using an annexure or do i have to make an invoice. Please guide. Further i have also purchased one machine in unit 1 but the same also to be installed in unit 2 now. The invoice already received a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd accounted in unit 1?? How can i install this machine in Unit 2 without making an invoice?? - Reply By Himansu Sha - The Reply = Case1: if you have taken credit in the same machine at unit 1, then you have to reverse the credit. Invoice is essential. If no credit taken initially then there is no need for reversal of credit .also no invoice required. Case 2: if the goods have been received a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t unit 2 and the invoice at the address of unit1, then the suppliers can issue a note for diversion on the bill itself for sale in transit. For cex , both the units are independent units. If both the goods and invoices received in unit1 then making one invoice and reversal of credit is required. Reversal of credit is another issue. - Reply By deepak VORA - The Reply = Dear Sir, Thanks for you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r reply. I want to transfer the machinery and not the raw material or finished goods - Reply By Himansu Sha - The Reply = Please refer to rule 3(5) , 9 of cenvat credit rules 2004 .more specifically to rule 9(1)(a)(I)(II) , when you take credit, the goods if cleared from factory, invoice is essential under rule 11 of central excise rules . If you have not taken the credit, no invoice is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required, but your second unit cannot take any credit in absence of any proper document. For central excise rules , there are two units. - Reply By Himansu Sha - The Reply = As per rule 3(5) of CCR When inputs or capital goods, on which cenvat credit has been taken, are removed ........... An invoice referred to in rule 9 . As pert sec. 2(d), of the CE act , these are excisabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods and under rule 9 of CCR read with rule 11 of CE rules invoice is required. - Reply By Ganeshan Kalyani - The Reply = yes both the units are different in the eyes of law. So, issuing invoice is essential to take credit by the receiving unit. The sending unit need to reverse the credit, if it has availed. In first scenario, also need to see the reduction of credit on purchase at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rate of two and half percent per quarter. and if the value has been zero in the books of account then excise duty on the transaction value need to be paid. - transfer of capital goods from unit 1 to unit 2 - Query Started By: - deepak VORA Dated:- 22-4-2017 Central Excise - Got 5 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anagement 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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