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

[YAGAY andSUN]

Under Rule 4 5(a), you can send the tools and dies to the vendor premises for production of inputs/components on your specification.

The cost of tools and dies should be amortises in the assessable value of the input/components at the time of removal of the same from the vendors' premises.

AI Summary

Sending tools and dies to vendor permitted; tool cost must be amortised into assessable value on removal. Tools and dies can be sent to a vendor for production on the manufacturer's specification; their cost must be amortised into the assessable value of the inputs/components at the time those goods are removed from the vendor's premises.