TaxTMI 
TaxTMI 
AMORTISATION REQUIREMENT UNDER GST
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....MORTISATION REQUIREMENT UNDER GST<br> Query (Issue) Started By: - CABIJENDERKUMAR BANSAL Dated:- 18-6-2018 Last Reply Date:- 17-11-2018 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>X(USA) has signed contract with Y(India) for production of goods & export to X.Mould was to be provided by X as per contract. X has given advance of ₹ 50 L to Y for purchase of mould in India & to be re....
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....tained by Y for production. Y purchased mould from Z(India) & availed GST input on this. Should Y raise export invoice of mould to X(though physically to be retained by Y)? or Y shall add amortised cost of mould in export invoices of goods to X? is input eligible on purchase of mould by Y from z. Reply By Rajagopalan Ranganathan: The Reply: Sir , It depends on the invoice raised by Z whether th....
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....e invoice is raise in the name of Y or in the name of X but to be delivered to Y. If supply of mould by Z is to Y then Y can avail the credit and on exporting the mould to X on completion of production and supply programme he can claim the refund of ITC of gst paid on the mould. Under GST law amortization of mould cost is not comtyemplated. Reply By YAGAY and SUN: The Reply: Pl. check point no. ....
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....1 of th Circular No. 47/21/2018-GST dtd. 08th June in matter. Reply By JAYARAMAN RAMAMURTHY: The Reply: Sir, in the said notification, i could not make any difference between 1.2 & 1.3. can anyone explain to me with nice examples? thanks & regards J Ramamurthy Reply By Ramaswamy S: The Reply: The most confusing circular is the circular dated 8th June 2018 regarding moulds and dies. It has ....
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....raised more doubts rather than clarity. Reply By Ramaswamy S: The Reply: 1.1 - situation where the tools are moved from the OEM to the component manufacturer. Not a supply. No tax payable. No reversal of credit. 1.2 Further clarifies point 1.1 that in such case no need to add the amortised value to the component. 1.3 situation (bill to ship to) - retained by the component manufacturer - no mo....
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....vement of tool from OEM to component manufacturer - Credit to be reversed. Amortised cost to be included in the value. Had the clarification at point 1.2 be after 1.3, then the issue would have been clear. But that was not the intention. Regards S.Ramaswamy<br> Discussion Forum - Knowledge Sharing ....