SHIFTING OF RM TO NEW GODOWN

[Asked by Guest]

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.

AI Summary

Reversal of input credit required for transfers to an approved external godown; credit reclaimable on return with invoices.
Removal of raw materials with modvat credit to an approved external godown necessitates reversal of the credit on removal; inputs may be removed under the assessee's own invoice. Maintain proper accounts and comply with approval-letter conditions. On return to the factory, credit may be re-availed based on the assessee's inward invoice along with the manufacturer's invoice. The job-worker time-limit rule does not apply to transfers to an external godown.