Transfer of sad under rule 10a cenvat cr. rule

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Amitabha Mukherjee

Sr. Manager GST

253 Points Posted on 23 June 2012

Dear Friends,

Ref:-Under Rule 10A of Cenvat Credit Credit Rules

We have two units and same PAN no. We can transfer our SAD(Special Addl. Duty or Addl Duty of Imports4%) amount from one unit to another unit at the end of each quarter, procedure as maintained in Rule-9 . From this budget 2012central Govt facilate of transfer cenvat Credit for the manufacturer having more than one register unit to another unit vide Notn No. 18/2002 -CE(NT) issued in this regards, w.e.f 01.04.12.

A transfer Challan shall also be issued which will contain registration no. , Name, address of both unit . On the basis of this transfer challan the recipient unit will be allowed to take credit.

My question 1) What is format of transfer Challan ?

2) what is meant for each quarter ? Is this 30.05.12, 30.09.12, 31.12.12 and 31.03.12

3) It is also written that the manufacture shall submit the monthly return as specified under this rule.separately in respect of transfering and recipient premises. can you give the idea how to prepare this?

4) How to prep[are ER-1 , where it will be shown?

Amitabha Mukherjee

Replies (3)

Arun Kumar Singh

GST Advocate

15220 Points Posted on 23 June 2012

1. Issuing a transfer challan containing registration number, name and address of the registered premises transferring the credit and receiving such credit, the amount of credit transferred and the particulars of such entry.

2. Each quarter mean April-June, July-Sep, Oct-Dec and Jan-March.

3. The manufacturer or producer shall submit the monthly return, as specified under these rules, separately in respect of transferring and recipient registered premises.

Amitabha Mukherjee

Sr. Manager GST

253 Points Posted on 03 July 2012

If you go through the Notification no. 18/2012-CE(NT), under Rule 10A(2) of CENVAT Credit Rules, 2004 it provides that

" (2) The manufacturer or producer shall submit the monthly return, as specified under these rules, separately in respect of transferring and recipient registered premises"

It is clear that notification requires to submit the monthly return, however, sub-rule (1) says that excess credit of SAD is to be passed once in a quarter. Earlier, you used to submit the monthly return prescribed under Rule 9(7) of CENVAT Credit Rules, 2004 separately in addition to the monthly ER-1 return. However, consequent to the change in the format of ER-1, it is synchronised in a such a way that it contains the return of Rule 9(7) of CCR,2004 and return of Rule 12 of CER,2002. No separate CENVAT return is required now.

Anyway, till the return is modified, you please show in the credit utilised for other payment and clearly mention in the remarks column that the credit is transferred in terms of Rule 10A of CENVAT Credit Rules,2004.