30 June 2023
Sir / Madam, We want to move one spare motor to one of our suppliers for time being (temporarily) to use the motor at their premises distance about 250 km away from our factory but within same State (Tamilnadu) for 2 or 3 months. After they will have procured a new motor or will get serviced their existing motor, they will send back the motor which we have moved now. Kindly note that the transactions are without considerations / hire/ rent / lease.
Kindly advise us
How can we prepare E way bill for sending the motor to the supplier?
Is it Correct, if we prepare a like Delivery Challan for sending for service and based on the DC prepare a Eway bill?
And at the time of receiving back,
Prepare a like DC for receiving the serviced motor from supplier and based on the DC prepare E way bill?
What would be a proper compliance / right way of preparing E way bill? Kindy advise us.
07 July 2024
Certainly! Here's how you can handle the movement of the spare motor to your supplier's premises and back, complying with E-way bill requirements:
### Sending the Spare Motor to Supplier:
1. **Preparation of Delivery Challan (DC):** - Prepare a Delivery Challan mentioning details such as: - Date of dispatch - Name, address, and GSTIN of the supplier (your recipient) - Description of the goods (spare motor), including quantity and value (if applicable) - Place of dispatch (your factory) and place of delivery (supplier's premises) - Reason for transportation (temporary movement for repair/service)
2. **Generating E-way Bill:** - Based on the Delivery Challan prepared, generate an E-way Bill on the GST E-way Bill portal or through your ERP/software. The E-way Bill should include details such as: - Goods description, HSN code (if applicable) - Value of goods (if applicable) - Transporter details (if goods are transported by road) - GSTIN of the supplier (recipient) - Place of dispatch and delivery - Validity period (consider the distance and expected duration of use/service)
3. **Transportation:** - Ensure that the E-way Bill is with the transporter accompanying the goods during transit. The Delivery Challan should also travel with the goods.
### Receiving the Serviced Motor Back:
1. **Preparation of Delivery Challan:** - When the serviced motor is ready for return, prepare another Delivery Challan detailing: - Date of dispatch from the supplier's premises - Name, address, and GSTIN of your company (recipient) - Description of the goods (serviced motor) - Place of dispatch (supplier's premises) and place of delivery (your factory) - Reason for transportation (return of temporarily moved goods after service)
2. **Generating E-way Bill:** - Based on the return Delivery Challan, generate another E-way Bill incorporating similar details as mentioned above.
3. **Compliance and Documentation:** - Ensure that both the outgoing and incoming E-way Bills and Delivery Challans are maintained properly for future audits. - Verify that all details on the E-way Bills are accurate to avoid compliance issues.
### Key Considerations:
- **Nature of Transaction:** Since the movement is temporary and without consideration (not for hire, rent, or lease), it should be documented clearly as a temporary movement for repair/service. - **Time Limit:** Ensure the validity period of the E-way Bill aligns with the expected duration of the motor's stay at the supplier's premises and its return. - **Compliance:** Follow the guidelines of the GST portal and ensure all necessary details are accurately filled in both the Delivery Challans and E-way Bills.
By following these steps, you can ensure compliance with E-way bill requirements for the temporary movement of goods and their subsequent return after service. If you have any specific questions or need further clarification, feel free to ask!
CAclubindia
