Tool Amortization

[tasvir sharma]

Dear All,

We are auto part manufacturer we have use the customer tool on challan and add tool amortization for excise duty in invoice.

we need the challan clear of tool within 180day? if not please let me about the notification under cover the subjected case.

Tasvir Sharma 

AI Summary

No 180-Day Return Rule for Manufacturing Tools Under Rule 4(5)(b) of Cenvat Credit Rules 2004. An auto parts manufacturer inquired about the requirement to clear tools used on challan within 180 days for excise duty purposes. Respondents clarified that there is no obligation to return jigs, fixtures, moulds, and dies within 180 days if used in manufacturing under rule 4(5)(b) of the Cenvat Credit Rules, 2004. The condition applies only if the job worker uses these tools on behalf of the manufacturer. The amortization cost must be included in the assessable value for calculating Central Excise Duty, but VAT/CST is not applicable on the amortized value.