Alteration of moulds for new product
This query is : Open
Rakesh Kothari
(Querist)
05 May 2012
Sir,
Recently we had to alter the MOULDS & ITS BOX for casting a new product since its design was different from our previous product.
In the process we had to incurr expenditure on STEEL, LABOUR & CONSUMABLES (viz.WELDING RODS) for ALTERATION / MODIFICATION of the MOULDS & ITS BOX.
Can we claim the the cenvat benefit on the expenses since ALTERATION / MODIFICATION has been done on the MOULDS & ITS BOX for producing the final product.
Kindly refer the section(s) under which the same can be claimed.
Early response in the matter would be highly appreciated.
Thanks & Regards,
Recently we had to alter the MOULDS & ITS BOX for casting a new product since its design was different from our previous product.
In the process we had to incurr expenditure on STEEL, LABOUR & CONSUMABLES (viz.WELDING RODS) for ALTERATION / MODIFICATION of the MOULDS & ITS BOX.
Can we claim the the cenvat benefit on the expenses since ALTERATION / MODIFICATION has been done on the MOULDS & ITS BOX for producing the final product.
Kindly refer the section(s) under which the same can be claimed.
Early response in the matter would be highly appreciated.
Thanks & Regards,
S.P.Mahanta
(Expert)
05 May 2012
Mould is capital goods under excise rules.Expenses on steel, consumables on repairing / alteration to capital goods eligible for cenvat credit subject to rule 3 of ccr-2004 & rule 11 of central excise rules 2002. As regards, labour expenses, service tax credit available on bill of service provider.
Message likes :
1 times
Rakesh Kothari
(Querist)
05 May 2012
Mr. S.P.Mahanta,
Thank you very much for clearing my doubts.
Thank you very much for clearing my doubts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- Import Order Cancelled.
- TDS on Dashcam rent and allied services
- GSTR-9C filing
- Working on Gold wastage during Melting of old gold jewellery
- IMS (import of goods) ITC related
- Capital gains in IT returns
- Section 269ST applicability for capital introduced by partner to his partnership firm
- GST ITC as per notification 12/2023- central tax
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
