Cenvat credit on stock tranfer inwards

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Balendra Parmar

Finance Manager

89 Points Posted on 09 March 2012

Dear Sir,

We are manufacturer of eletronics item in Gujarat.We are getting goods in manufacturing process from HO ,Tamilnadu. Our HO transfrred goods after payment of custom duty and Excise duty.This is half finished goods.HO trnsfer goods as a stock tranfer.It is utilized in manufacturing of Final Product.We are export all goods.We want to take cenvat credit on stock tranfer.We do it?if yes provide the process for taking cenvat credit on it.

Regards,

Balendra Parmar

Replies (3)

ACMA Obulirajan R

M.Com ACMA

1021 Points Posted on 09 March 2012

If you want to take cenvat credit for the material transfered from other branch or unit of your company, you company must be registered under Large Taxpayer Unit (LTU). If your company registered under LTU, then the transfering company has to issue a cenvat transfer document and based on that you can tax credit...

R P Ananthakumar

Sr. Officer - Central Excise/Cash

492 Points Posted on 09 March 2012

Yes.

HO has has to be raised the stock transfer invoice to Gujarat unit with payment of duty, based on that invoice you can take credit at your unit and value arrived as per your cost account. Please refer Provisinal Assessment procedure to do this.

CA Nitin Karmalkar

Senior Associate

84 Points Posted on 10 March 2012

No need to take LTU registration because being LTU require certain condition to be fulfilled.

Further HO is paying duties on input & trasferring the same to Gujrat. The goods will required to be cleared under cover of excise invoice by reversing duties availed by HO. his will be removal as such for HO. So on the basis of excise invoice gujrat unit can take cenvat credit.

Further clarification Mo.No. 9822610852