TaxTMI 
TaxTMI 
Transfer of Cenvat Credit from One Unit to another Unit
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....ransfer of Cenvat Credit from One Unit to another Unit<br> Query (Issue) Started By: - Ramesh Totla Dated:- 16-5-2013 Last Reply Date:- 23-5-2013 Central Excise<br>Got 3 Replies<br>Central Excise<br>Fact of the Case:- 1. Location of Factory i) Cuddlore (Tamilnadu): Manufacturing of Porcelain Insulators ii) Madurangdgam (Tamilnadu) : Manufacturing of Silicon Insulator. 2. We have taken Excise r....
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....egistration for both units separately. Range and Division for both units is different but "commissioner ate" is same. 3. We have taken service tax registration for unit I only and registration process for unit II is going on. 4. Due to Bad market of Polymer Insulator we are unable to sell the manufactured product. Hence we are not adjusting the Cenvat Credit on Input, capital Goods and Input ser....
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....vices lying at unit II. 5. At unit I we are manufacturing porcelain insulator regularly and selling for which excise duty is payable after adjusting the Cenvat credit available at Unit I. 6. At Unit I we have also an Independent EHV Lab which are doing testing for In-house and outsourcing. On this service company has to pay service tax collected from outsiders. Issues: 1. Can we transfer the C....
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....envat Credit (on Inputs, Capital Goods) available at Unit II to unit I without removing the goods from Unit II? 2. Can we transfer the Cenvat Credit (on Input services) available at Unit II to unit I for adjusting against the service tax Payable? 3. Can we adjust our Service tax Payable on testing services at Unit I against the Cenvat Credit of Inputs used in Manufacture of Porcelain Insulators....
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....? 4. If we take Centralized registration for both units can it will affect the Adjustment of Cenvat credit Scenario. Reply By Pradeep Khatri: The Reply: If you are registered under LTU then you can transfer the CENVAT credit without transferring the R/M, Inputs and Capital Goods. Reply By R MUTHURAJ: The Reply: Dear Mr.Ramesh, My answers to your questions are as under: 1. Can we transfer th....
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....e Cenvat Credit (on Inputs, Capital Goods) available at Unit II to unit I without removing the goods from Unit II? Yes it is possible, you have to get registered with Large Taxpayer Unit (LTU), Chennai and then you can simply transfer the credit available from one unit to another by a transfer voucher. 2. Can we transfer the Cenvat Credit (on Input services) available at Unit II to unit I for adj....
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....usting against the service tax Payable?Yes as per the Rule No.7 of Cenvat Credit Rule, 2004 it is possible to adjust the credit available in one unit to another unit by raising on Distribution Invoice with some conditions. 3. Can we adjust our Service tax Payable on testing services at Unit I against the Cenvat Credit of Inputs used in Manufacture of Porcelain Insulators? Yes. 4. If we take Cent....
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....ralized registration for both units can it will affect the Adjustment of Cenvat credit Scenario. It will not affect. Reply By Ramesh Totla: The Reply: Thanks<br> Discussion Forum - Knowledge Sharing ....