Transfer of capital goods from principle place to Additional place

[Narendra Soni]

Dear Experts.

We have procured machinery in 2010,some are imported under EPCG authorisation and others are from domestic on payment of excise duty. All are installed at our principle place of business.

Now, we required to shift these machinery to our additional place of business situated in same place having same GSTIN no.

Which document i.e.stock transfer challan or Tax invoice is required to prepare for transferring these machinery from one plant to another plant located in same city having same GSTIN no.( one is principal place another is declared as additional place of business in GST certificate).

What will be value required to shown in transferring document.

Please suggest what formalities requited for DGTF, GST ,Customs office and reversal of any tax/GST/Customs duty etc.

[YAGAY andSUN]

You would have to seek permission from DGFT's EPCG Committee and your IEC & RCMC must show the place where you want to shift the capital goods procured under EPCG scheme. After obtaining necessary permission, you can shift it on Delivery Challan accompanied with E-Way Bill. Also take necessary insurance cover for such movement.

[Kishan Barai]

Goods, excepting tools imported under EPCG scheme by sectors specified in FTP, shall not be allowed to be transferred for a period of five years from date of imports even in cases where export obligation has been fulfilled. Authorization holder shall produce, within six months from date of completion of import, to the concerned RA, a certificate from the jurisdictional Customs authority or an independent Chartered Engineer, at the option of the authorisation holder, confirming installation of capital goods at factory/premises of authorization holder or his supporting manufacturer. The RA may allow one time extension of the said period for producing the certificate by a maximum period of 12 months with a composition fee of ₹ 5000/-. Where the authorisation holder opts for independent Chartered Engineer’s certificate, he shall send a copy of the certificate to the jurisdictional Customs Authority for intimation/record. The authorization holder shall be permitted to shift capital goods during this period to other units mentioned in the IEC and RCMC of the authorization holder subject to production of fresh installation certificate. In the case of import of spares, the installation certificate shall be submitted by the Authorization holder within a period of three years from the date of import.

AI Summary

Restriction on transfer of EPCG-imported capital goods requires DGFT permission and installation certification before relocation. Relocation of capital goods procured under the EPCG scheme to an additional place of business under the same GSTIN requires prior DGFT/EPCG Committee permission and amendment of IEC and RCMC to reflect the destination unit. Movement should be on a delivery challan with an E Way Bill and insurance. EPCG-imported capital goods are subject to a prescribed non-transferability period from import; transfers within IEC/RCMC-listed units are permitted only on production of a fresh installation certificate from Customs or an independent chartered engineer, with RA-authorised extensions subject to composition fees, and a distinct regime for spares.