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

Challan use for outgoing capital goods allowed where goods return within 180 days; supplier may levy service tax or excise. When purchased moulds or machines are sent out for modification or repair the supplier will charge service tax or excise duty according to the scope of work; a challan must be issued on removal and closed on return, and the challan format under Rule 4(5)(A) may be used provided the capital goods return within 180 days. VAT way bills should accompany outward/inward movement if applicable, and transportation may attract GTA service tax.