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Tool amortisation.

Central Excise - Started By: - JAYARAMAN RAMAMURTHY - Dated:- 12-2-2016 Last Replied Date:- 13-2-2016 - we had provided our tools to our vendor. the tool cost is say ₹ 100000 and 10000 pcs can be made out of the tool. Vendor made the tools and we paid for the tool and the tools are retained at the vendor end to supply components to us.pl explain us 1; Excise duty on tool amortisation - how to handle? pl explain with various scenarios ..2. after some time say after supply of 2000 pcs, I pre .....

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r) supplied on payment of duty or otherwise. In the absence of this , it would be difficult to comment on the situation. However, I am giving the following points which may of help for you.1. If the arrangement is on job work basis, the question of amortization does not arise( since you are going to pay the duty.2. You may kindly aware, the general practice of amortization is value by the number of pieces in this case and the value to be amortized accordingly till the expected life/completion of .....

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ly By Rajagopalan Ranganathan - The Reply = Sir, Since your vendor got manufactured the tool there are two scenarios, namely he may get it manufactured by another manufacturer who may be availing SSI exemption. In this the manufacturer will not pay any duty if his clearance is within the limit of 150 lakhs. Otherwise he will pay duty and clear it you vendor. In that case you vendor can avail cenvat credit of duty paid on the tool and use it for discharging his duty liability on the components cl .....

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