Ecise duty on tools & fixtures kept at supplier end

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2011 Dear All,

We have purchased tools & fixtures from our supplier and kept at there premises.Now he want to raise a invoice of tooling with excise duty.

Now my question is can we get the credit of excise duty?? as tool is still in there factory and we suggest him to charge excise duty proportionately on further dispatch of material made through tooling & fixtures.

U S Sharma

U S Sharma (Expert)
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23 August 2011 tools and fixtures are your property and you have to issue challan for job work to them for sending the same for job work.

you can avail input credit on purchase invoice ( excise paid) as capital goods.

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2011 Hello Sir,thanks for the reply.Job work challan is valid for 6 months and if we will not received back the goods we have to debit the duty from our books.In this case we will keep our tools & fixtures with our supplier for more than 1 years.Pls suggest

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U S Sharma

U S Sharma (Expert)
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26 August 2011 challan is just a formality(now its 1 year), by records just, show that its returned and again re-ossued, otherwise it would be property of job worker and you would have to reverse the credit taken

repeat the challan from job worker and yours every 6 month or 1 year as u feel good

Querist : Anonymous

Querist : Anonymous (Querist)

28 August 2011 Ok Sir.Thanks for all of your answer of my queries.

Regards