Purchase Returns

[Guest]

Procedure and documents to sent back the material purchased for repairs/replacement. Procedure and documents to sent rejected goods when we already taken cenvat credit on the goods. Procedure and documents to sent raw material to some other vendor as sample. what will be the cost of raw material in case it is to be sold to some customer or sent as sample?

Please suggest.

 

[Rajesh Nathoo]

You will have to reverse the credit taken taken on raw materials when these are removed from the factory .It is immaterial at what price u are selling the raw material .

AI Summary

Cenvat credit reversal required when raw materials are removed from factory; sale price of the materials is immaterial. Cenvat credit taken on raw materials must be reversed when those materials are removed from the factory for repairs, replacement, rejection or as samples; the sale price or value at which the materials are disposed of is immaterial to the reversal obligation.