I DEVELOPED SOME SHEET METAL PRESSED COMPONENT TOOLS FOR A CUSTOMER AND STARTED SUPPLYING THE COMPONENT MANUFACTURED OUT OF IT TO THE SAME CUSTOMER. THE CUSTOMER GAVE ME A PO FOR THE COMPONENT COST PLUS THE COST OF AMORTISATION FOR THE TOOL ON SOME FIXED QUANTITY.
NOW THE AMOERTISATION QTY IS COMPLETED AND SO THE CUSTOMER HAS PAID THE WHOLE OF THE TOOL COST TO ME. AND I HAVE PAID THE EXCISE DUTY ON THE TOOL.
THE CUSTOMER HAS NOW GIVEN ME A PO FOR THE COMPONENT ( SUBTRACTING THE TOOL AMORTISATION COST).
DOEA THE TOOL BELONG TO ME NOW? WHETHER SOME EXCISE DUTY IS TO BE PAID FOR THE AMORTISATION OF THE TOOL AS I AM STILL USING THE CUSTOMER'S TOOL TO PRODUCE THE COMPONENT?
CAclubindia
