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57f4 applicable for machinery sent to job worker?

prashant bagul (service) (30 Points)

24 December 2008

Can anybody explain as to whether challan 57f4 is mandatory for machinery sent to job worker for processing?. The machinery will be at subcontractor location but the property belongs to us only. After say 1-2 years it will be returned.

Pash

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9 Replies

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 30 December 2008

If you are sending the capital goods from your factory, challan is necessary.

However, under the new Cenvat Credit Rules, you can get the capital goods diretly at your job worker premises. The invoice will show that hs is the consignee.

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CA Pramod Singhal (CHARTERED ACCOUNTANTS) (68 Points)
Replied 02 January 2009

Dear,

You have to fill the 57 f 4 and send the job worker for reparing the capital goods and must have return to your factory within six months.

and if directly the jobworker sight then how will u claim the excise duty credit on that capital goods.

Thanks & Regards

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 05 January 2009

If the goods are sent to job wroker directly, the credit can be taken under Rule 4(5) of the Cenvat Credit Rules. It is in addition to Rule 4(1) uder which credit is taken when the inputs or capital goods are received in factory.

There is no reason to interpret Rule 4(5) in the manner that goods must be received in the factory and credit should be taken under rue 4(1) and only after that goods can be sent to job worker. Rule 4(5) is in addition to Rule 4(1), which is signified by the term "even if", in the rule.

Manish Gaikwad (Service) (36 Points)
Replied 08 January 2009

Dear Prashant,

As far as machinery is concern,

1 ) if you have already claim the cenvat credit on the machine which you want to transfer then you have to prepare 57F4 Challan for further process. If you sending on 57F4 Challan, as per rules it has to come within six months from the date of clearances. In case if machine is not received within six month you have to reverse whatever cenvat credit you have taken and when you received machine back to your plant you can take credit.

2) If you have not taken credit on machine you can send it on normal delivery challan. Pleaes dont take credit on the machine untill and unless machine comes to you.

Regards,

Manish

SUNIL KUMAR JANGRA (ACCOUNTANT) (26 Points)
Replied 08 May 2010

plz send me 57 f(4) challan format in excel sheet.

s.k.jangra

excise executive

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Hemant Sen (Accounts Incharge) (25 Points)
Replied 18 February 2011

Hi,

Please sent me the format of 57f4 for applicable for machinery sent to job worker.

Thanks & Regards

Hemant sen

Prashant Prakash Medhe (Chartered Accountant) (23 Points)
Replied 13 August 2011

Whether entry in the books of accounts should be made for machinery movement on 57f4 challan or it is sufficient to have a entry in manual register.?

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 13 August 2011

There is no books of accounts in existance which can be recorded for machinery sent for repair / reconditioning. so the challan and the register is sufficient for the purpose.

CA Saiyum khan (Practicing CA) (690 Points)
Replied 14 August 2011

Originally posted by : Prashant Prakash Medhe
	Whether entry in the books of accounts should be made for machinery movement on 57f4 challan or it is sufficient to have a entry in manual register.?

As the ownership of the assets remain unchanged on movement through challan for repairing no financial accounting entry is passed. However to locate the assets register has to be maintained. Some ERPs are providing the maintenance of such register.