HI All,
We are the manufacturer of Ropeways on raw material supplied by the foreign group company which purchased from domestic manufacturer but invoice received in favor of foreign company. Now we have problem here, whether can we avail the cenvat credit based on the invoice issued by the local vendor.
Consignor - TN manufacturer
Billed to - Italy company Address
Delivered at : My Factory address (TN)
Basic + ED +VAT = Invoice value (INR).
kindly give your suggestions.
Information provided is incomplete. More details required .
1. Purchase order from Group company-Italy "X" to us "Y" for exporting of Ropeways parts to ITALY
2. for manufacturing Ropeways parts, procurement of raw materials are done by our Group company "X" from local vendor/ Manufacturer supplied to us.
invoice issued as follows by supplier
Billed to - Italy company Address
Delivered at : My Factory address (TN)
Basic + ED +VAT = Invoice value (INR)
3. after receiving the material we are submitting the supplier bill to Italy for another invoice from them which is billed to us .
4. Can we take the input cenvat credit on the purchase of material from local vendor by our group company?. (sl.no 2)
yes. you could avail. You would be the consignee in the purchase bills. Since you are the person using the raw materials (inputs) for manufacture of exciseable goods, you are eligible to avail Cenvat credit on such goods, though biled to and paid by parent company.
Dear Mr Hegde,
Correct me if I am wrong.
Documentation for this kind of transaction needs to be error free.
Domestic supplier should mention HS code and ECC (ship to party). This HS code should tally with export documents.
The PO to domestic supplier should mention bill to party and ship to party and HS Code.
CAclubindia
