Inter unit Transfer

[RAM SHARMA]

Dear Experts,

We have two unit. We want our 11 years old capital goods transfered to our other unit. One of our capital goods value is nil and we have not availed cenvat credit on these assets. What procedure should be adopt to transfer these assests through raised invoice or challan. What type of value showed in document because commercial value nil in our books. Please advice.

Thanks 

 

AI Summary

Company Transfers 11-Year-Old Capital Goods; Experts Advise on Invoicing and Documentation for CENVAT Compliance A company seeks advice on transferring 11-year-old capital goods between its two units, with the goods having no commercial value and no CENVAT credit availed. Experts advise issuing an invoice rather than a challan, noting on the invoice that no CENVAT credit was claimed. They suggest substantiating this with documentation and potentially showing a salvage value. If the goods' written-down value is nil, a nominal amount might be determined for Central Excise Duty, or the transfer could occur at nil value. Alternatively, the transaction could be treated as a scrap sale, with no impact on the balance sheet.