MOULD MACHINE SENT TO REPAIR/TESTING

[RAM SHARMA]

Dear Experts,

We have purchase mould and machine and after one month we want to sent supplier some modification or testing. What will be the procedure and how many types of document prepared. Pl. advice.

Thanks 

[YAGAY andSUN]

The supplier would have to charge either service tax or Excise duty according to the scope of work as applicable as per the agreement.

You would have to issue a challan which needs to be closed within 180 days from the date of removal of machine and moulds for modification or repair.

For VAT purpose, way bill if applicable should be accompanied with the goods outward and inwards.

Transportation of Machine and Moulds will attract service tax on GTA services.

[RAM SHARMA]

Dear Sir,

Which type of challan we have to issue. I think challan under Rule 4(5)(A) is used for manufacturing goods for job work but in regard to capital goods i have little doubt. Pl clerify.

[YAGAY andSUN]

There is no issue in using challan format's under Rule 4(5)(A) provided the capital goods must return within 180 days.

AI Summary

Guidance on Sending Moulds for Modification: Use Challan Under Rule 4(5)(A) if Returned Within 180 Days A company inquired about the procedure and documentation required for sending a mould and machine to a supplier for modification or testing. An expert advised that the supplier might charge service tax or excise duty based on the agreement's scope. The company must issue a challan, to be closed within 180 days, and use a waybill for VAT purposes if applicable. Transportation will incur service tax on GTA services. The company expressed uncertainty about the appropriate challan type for capital goods, and it was clarified that using a challan under Rule 4(5)(A) is acceptable if the goods return within 180 days.