Material used for R & D Purpose

[Asked by Guest]

Dear Sir,

We are a manufacturer and we have R & D in which we are doing all R & D works of our factory.

For R & D purpose we take some material like R.M & production sample pieces for R&D purpose.

My Question is how we can issue this material for R & D Purpose as we are not use these material for production purpose. We need to reverse the duty on that material how much we use for this R & D or not ?

Regards

Swapneswar

AI Summary

Research and Development eligibility: in factory R&D qualifies for CENVAT credit, external R&D may not and samples removed require duty.
In factory Research and Development is integral to manufacturing and permits CENVAT credit on inputs used for R&D without reversal; external R&D units located outside the factory do not qualify for credit. Removal of developed goods or samples from the factory gate triggers excise duty and requires appropriate invoicing and duty payment. Issuance to an in house laboratory and destruction of goods after testing within factory premises do not attract duty or require reversal under the described circumstances.