Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Harikrishnan (Engineer (Procurement))     01 October 2014

Cenvat credit on goods procured

Sir,
 
  I'm working in the procurement section of a Power Transfomer manufacturing firm situatd in Kerala. We source most of the raw materials from north indian suppliers/manufactirers. Most of our customers are also in Northern side of India. Transformer oil is one of the rawmaterial and which we just fill in the tank of the transfoemr before dispatch. This can be done from the site/customer's end also. If we could dispatch the same from our supplier to customer's site huge amount of freight can be saved. Is there any provision to avail CENVAT credit for direct dispatch of oil from our supplier to customer as we are un necessarily wasting our money (freight) and time ( travel time).



Learning

 1 Replies

Jacob K. Abraham (Sr. Manager)     07 October 2014

You can ask your transformer oil suppliers to generate the excise invoice  with you as buyer and your client as consignee and despatch the transformer oil directly to your client (as sale in transit).  With this your client can avail cenvat.  You can subsequently raise commercial bill to your client.

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register