LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Utilization of cenvat of one unit by another unit

Gulshan Khurana (AGM) (24 Points)

03 June 2016

In our one unit have a lot of Cenvat available, can we transfer/use this in other unit

Reply
Follow
Share

3 Replies

CA Mohit Khattar (Practicing Chartered Accountant) (50 Points)
Replied 04 June 2016

Yes it is possible, you have to get registered with Large Taxpayer Unit (LTU) and then you can simply transfer the credit available from one unit to another by a transfer voucher and also can utilise the sameas per the Cenvat Credit Rules.

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 05 June 2016

Other than LTU - The reason for the accumulation maybe examined. It could be due to value addition being done in one unit more and job work usage and possibly supply to EOU or export. If export then rebate/ procurement without paymentof duty can be examined. If local only then possibility of sharing input service credits thru input service distributor can be see.

Procurement and receipt planning can see that credit available in unit which has deficiency.