Material/capital goods sent for inter unit

Dear Experts,

We have given a contract to out side party for developing and fabricating capital goods in our premises as per our norms. We are providing all material for such capital goods. After developed the such capital goods we want transfer to our other unit.

Secondly, we want some material for lab testing to our inter unit. what will be the legal procedure both the cases. 

Thanks
Replies (1)

Sir,

In my view, if you want to transferred to Capital Goods in other unit, you will be follow Two Step are given bellow;

If you want to Sale other unit;

First Sale value of Capital Goods excess show value @ 10% on Sale invoice and charged the Excise duty on excess charged @ 10%, after sand you other unit, due to reason without payment of Excise Duty you can not removed the excise-able goods on the factory premises.

If you want to transferred to other unit but recd. the same capital goods with in Six month otherwise you have to pay Excise Duty after complete the Six month.

Transferred to Capital Goods only for six (6) months as per Rule 4(5)b and also the said material brought / sand as per rule 4(5)a.

Thanking you

( Harendra KUmar )

 

 

 

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