Procedure to send tools and dies into vendor for production

[Sanjeev Kashyap]

Can some one help me to tell the procedure for sending Tools and Dies into vendor premises for production, without any cost involved as RGP !!

 

Thanks,

Sanjeev Kashyap

AI Summary

Rule 4 5(a) Clarifies Cost-Free Tool Transfers to Vendors for Production; Amortization Required in Final Product Value. A user inquired about the procedure for sending tools and dies to a vendor for production without incurring costs, using an RGP. A respondent clarified that, according to Rule 4 5(a), tools and dies can be sent to a vendor for producing inputs or components as specified. The cost of these tools and dies should be amortized in the assessable value of the inputs or components when they are removed from the vendor's premises.