Dear Sirs,
We have procured raw materials (PP) and stored in the factory premises. Due to space cconstraint, we have taken a rental godown, which is approved by excise department. Now we are proposing to move some of RM to new godown, which all are availed modvat credit. Pl advice the procedure.
Company Must Reverse Modvat Credit When Moving Raw Materials to Rented Godown, Can Reclaim Upon Return A company is facing space constraints and plans to move raw materials (RM) to a rented godown approved by the excise department. The materials have availed modvat credit. It is advised that when moving RM to the godown, the credit must be reversed and can be reclaimed upon returning the materials to the factory, using the company's invoice and the manufacturer's invoice. Proper accounting of RM movement is essential, and all conditions in the excise department's approval must be followed. The 180-day return condition for job work does not apply to this scenario. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
