amortization cost-reg

[Ramakrishnan Seshadri]

We request the experts to clarify my doubt.

We are going to send some mould to our jobworker under jobwork challan. He will maufacture the product and send to us by paying excise duty. After receiving the product we will again use it for manufacturing our final product and pay excise duty and clear the same.

Now our question is whether amoritzation cost has to be charged by the jobworker.since the product is an intermediate product.

Kindly clarify.

Thanks & Regards,

S.Ramakrishnan.

AI Summary

No Need to Charge Amortization Costs for Moulds Sent to Job Worker for Intermediate Products Manufacturing. A participant in a discussion forum inquired about the necessity of charging amortization costs when sending moulds to a job worker for manufacturing intermediate products. The job worker would produce and return the items, paying excise duty, and the inquirer would use these for final product manufacturing. An expert clarified that amortization costs should only be charged if moulds and dies are supplied free of cost by the buyer for manufacturing finished goods to be supplied to them. Since this was not the case, the expert concluded that charging amortization costs was unnecessary.