Moulds and dies provided free to component manufacturers are not treated as supply and need no ITC reversal. Moulds and dies owned by an OEM provided free of cost to an unrelated component manufacturer do not constitute a supply and the OEM is not required to reverse input tax credit; if the contract treats moulds/dies as belonging to the component manufacturer but the OEM supplies them FOC, the amortised cost must be added to component value and the OEM must reverse credit. An e-way bill is required when goods transit through another State even if origin and destination are in the same State, with specified exemptions for certain DTA-SEZ movements.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Moulds and dies provided free to component manufacturers are not treated as supply and need no ITC reversal.
Moulds and dies owned by an OEM provided free of cost to an unrelated component manufacturer do not constitute a supply and the OEM is not required to reverse input tax credit; if the contract treats moulds/dies as belonging to the component manufacturer but the OEM supplies them FOC, the amortised cost must be added to component value and the OEM must reverse credit. An e-way bill is required when goods transit through another State even if origin and destination are in the same State, with specified exemptions for certain DTA-SEZ movements.
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