Import of Machinery

[Pradeep Kaushik]

Respected All,

 

We are Excisable goods manufecturer.

We are making import of Machinery from South Korea. All the Documentation will be in our Company's name and all tax and Custome duty liabilities are also will be paid by our company, i.e. this machinery will be our Company's asset.

But the machinery will be installed on our Supplier's Premises instead of our Company's Premises. The supplier  will do some job work for us and this machine is required for that process.

Is there any tax and legal compliances, we have to fulfill in this regards.

Please Advice

Pradeep Kaushik

AI Summary

Amortisation of imported machinery must be included in assessable value, with challan movement and Central Excise notification required.
Imported machinery retained as company asset but installed at a supplier's premises requires intimation to Central Excise and movement on a challan. The cost of buyer supplied machinery must be amortised and included in the assessable value of goods produced using that machinery, and CST/VAT is not applicable to that amortisation for Central Excise valuation purposes.