Transfer of Cenvat Cr.

[Ram Niwas]

Dear All

My question is that, we are the manufacturer of bearing parts and we have two unit A & B,

We purchase raw material in unit B and unit B send the material in unit A for Job working and unit a worked on raw material and send back to unit B.  Unit B working on the material and sale the goods in domestic and export market.  There is no billing from Unit A for sale all sale bill raised by unit B.

Now  we required a machine in unit A and we import this and pay CVD. We take credit in our books in unit A. is there any process to transfer the cenvat Cr. to unit B. AS I explain there is no billing from Unit A.

Pleas advise

Regards

Ramniwas

[YAGAY andSUN]

Get the registration under LTU and you can transfer the CENVAT credit between the units registered as LTU.

[Ram Niwas]

Sir any other provision

[YAGAY andSUN]

No Sir, there is no such provision but you may transfer SAD amount to your unit on quaterly basis.  This provision was introduced in this Budget, 2012.

AI Summary

Manufacturer Seeks CENVAT Credit Transfer Between Units; Large Taxpayer Unit Registration Suggested for Compliance A manufacturer of bearing parts operates two units, A and B. Unit B purchases raw materials and sends them to Unit A for job work, which are then returned to Unit B for further processing and sales. Unit A requires a new machine, and the manufacturer seeks to transfer CENVAT credit from Unit A to Unit B, despite no billing from Unit A. A respondent suggests registering under the Large Taxpayer Unit (LTU) to facilitate the transfer. Another response indicates no other provisions exist for such a transfer, except for transferring the Special Additional Duty (SAD) amount quarterly, as introduced in the 2012 budget.