Urgent help needed
This query is : Resolved
CA. A. K. GUPTA
(Querist)
01 April 2012
Dear Sir/Madam,
Plz solve my problem.
(1) co A sends raw material(cost=Rs 50,000) to co. B for job work on challan 57f4 to co B. but co B sends finished goods on sale invoice [ ( Rs.1,00,000), raw material =50,0000+ exps on manufacture = 40,000 + profit= 10,000) ] & does not close challan within 180 days. what will be the consequences in this situation.?
(2) suppose after 180 days, co A sends sale invoice of raw material sent by challan to co B with excise duty. in this situation, whether co A has to reverse cenvat credit on raw material or not?
(3) in situation(2), whether co B can take cenvat credit on invoice sent by co A?
plz help urgently
Plz solve my problem.
(1) co A sends raw material(cost=Rs 50,000) to co. B for job work on challan 57f4 to co B. but co B sends finished goods on sale invoice [ ( Rs.1,00,000), raw material =50,0000+ exps on manufacture = 40,000 + profit= 10,000) ] & does not close challan within 180 days. what will be the consequences in this situation.?
(2) suppose after 180 days, co A sends sale invoice of raw material sent by challan to co B with excise duty. in this situation, whether co A has to reverse cenvat credit on raw material or not?
(3) in situation(2), whether co B can take cenvat credit on invoice sent by co A?
plz help urgently
Sagar mal Pareek
(Expert)
02 April 2012
Yr.quiry is not very clear.However as understood solution is provided.
RM on which Cenvat credit has been taken may be sent for job work on the condition that it must be returnrd within 180days.If not recd in 180 days,the portion not recd,that is the proportionate reversal is reqiored.say if 30% goods remein with the JW,30 % reversal has to be made.Further when this balance goods is received 30% credit earlier reversed may be taken back.But proper records must be maintained.In this process there is no chance of the JW taking any credit.CA.SAGAR MAL PAREEK.09824346469
RM on which Cenvat credit has been taken may be sent for job work on the condition that it must be returnrd within 180days.If not recd in 180 days,the portion not recd,that is the proportionate reversal is reqiored.say if 30% goods remein with the JW,30 % reversal has to be made.Further when this balance goods is received 30% credit earlier reversed may be taken back.But proper records must be maintained.In this process there is no chance of the JW taking any credit.CA.SAGAR MAL PAREEK.09824346469
Sagar mal Pareek
(Expert)
02 April 2012
reversal as said is on the 181st day.the further credit is possible only when the RM (Balance)is recd.after 180 days,if it is not so balance credit will be lost forever.Tks CA.SAGAR MAL PAREEK
Note-in earlier response there were some typing errors,which may be ignored.
Note-in earlier response there were some typing errors,which may be ignored.
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