Extended factory for storage (rule 8)

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Ashwin (Querist)

22 August 2011 Hello,

If a manufacturer want to setup a warehouse outside the manufacturing facility for storage of input,
1. What is the best approach to ensure legal complaince.Is there any registeration involved with Excise [dealership/ manufacturing or any other]
2. How can CENVAT be availed upon receipt of goods at the warehouse.
3. What documents are required during transportation of goods from warehouse to factory.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

22 August 2011 Since cenvat credit is available only on receipt basis, the credit maybe availed proportinately to recived material. It maybe prudent to intimate the revneu that you have an intermeidate goods staorage area and as and when you recive goods from there, you are availing the credit.

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Ashwin

Ashwin (Querist)

23 August 2011 Thanks for your input...
Does that mean, CENVAT can only be availed at the time of receipt at factory?

Is there any way of availing at the warehouse, since at the time of receipt of the goods, the material will be reflecting in the manufacturer's book of accounts!

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