asset transfer

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CA CS Shradha tolia (Querist)

26 April 2010 if there are 2 units and entire assets are transfered from one unit to another will it attract excise, if so how?

UDAY

UDAY (Expert)

27 April 2010 yes excise is applicable at normal rate . Buying unit can take cenvat credit of the same.

CA CS Shradha tolia

CA CS Shradha tolia (Querist)

27 April 2010 how because its transfer

CA CS Shradha tolia

CA CS Shradha tolia (Querist)

27 April 2010 can u giv me with case law

SANJAY JAIN

SANJAY JAIN (Expert)

27 April 2010 The Excise complication would come only if the unit is registered in Central Excise and observing under CENVAT Credit Rules,2004.

The Rule 10 of the CENVAT Credit Rules,2004 is very clear for transfer of CENVAT Credit. The manufacturer is allowed to transfer credit to another unit in specified conditions. This transfer is subject to transfer of raw material, semi finished goods and capital goods.

For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).

CA CS Shradha tolia

CA CS Shradha tolia (Querist)

28 April 2010 its not about transfer its about utilising credit when i transfer capital goods do i need to pay excise

SANJAY JAIN

SANJAY JAIN (Expert)

28 April 2010 The credit amount would be transferred alongwith the capital goods.

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