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

Guidance on Reversing CENVAT Credit for Returned or Sample Raw Materials: Key Procedures Explained A user inquired about the procedures and documentation required for returning purchased materials for repairs or replacement, handling rejected goods after taking CENVAT credit, and sending raw materials as samples or selling them. The response advised that CENVAT credit must be reversed when raw materials are removed from the factory, regardless of the selling price.