Dear Members,
we want to transfer the capital goods (situated at Tamilnadu_ Registered under Excise ) to another site (A.P) , what are the legal procedures & compliance to be followed in order to make transfer smoothly.
Is it required to Register the Premises (A.P) ?
Why we want to make transfer is because of Project is over at Tamilnadu, so if we holding the Machinery there we are going to bear fixed costs. now the site (A.P) is not registered under Excise . is there any alternatives available for us to make transfer of Capital goods to A.P ??
Kindly assist me.
Business Faces Cenvat Credit Reversal for Capital Goods Transfer; VAT Implications on Leasing Discussed Under Rule 3(5A) A business seeks guidance on transferring capital goods from Tamil Nadu to Andhra Pradesh due to project completion, aiming to avoid fixed costs. The Andhra Pradesh site is not registered under Central Excise. A respondent explains the legal requirement to reverse Cenvat Credit as per Sub Rule (5A) of Rule 3 of the Cenvat Credit Rules, 2004, when removing used capital goods. If the goods are leased, the same rules apply. The discussion also touches on potential VAT implications, noting that the transfer of the right to use goods might be deemed a sale for VAT purposes. (AI Summary)
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