TMI BlogITC impact of FOC replacement of Imported machineryX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear experts, One of our client imported a machinery in Nov 2023 and paid IGST and custom duty and claimed ITC of IGST. The machine developed a critical problem due to which the manufacturer has ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reed to replace the machine free of cost and now client shall have to pay IGST and custom duty again at time of import of FOC Machine. The supplier has asked client to dispose the faulty machinery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and it shall be sold at salvage value of about 10% of purchase cost. My question is whether ITC reversal would be needed to be made as per section 18(6) on balance 90%? If not, kindly cite releva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt provisions/circulars etc. - Reply By Shilpi Jain - The Reply = Section 18(6) will apply. You could also consider to keep the machine in your factory for up to 5 years of life of the asset a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd then sell in order to by-pass this provision. - ITC impact of FOC replacement of Imported machinery - Query Started By: - ROHIT GOEL Dated:- 10-2-2024 Last Replied Date:- 12-2-2024 Goods and Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om - 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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