XYZ Ltd. (Maharashtra) has purchased moulds from PQR (Chennai). Moulds will be delivered directly to XYZ’s third party manufacturer (ABC) in Chennai. ABC will use the moulds to make the products and sell the products to XYZ. On receipt, XYZ sells these products to its customers). XYZ does not charge ABC any amount for use of the moulds. Ownership of the moulds remains with XYZ. 1) Can XYZ claim ITC of moulds even though the moulds will not be in XYZ’s premises? 2) What is the procedure / documentation to be done by XYZ, PQR and ABC in this transaction?
Frah Saeed Answered question September 1, 2020
- Yes as will be regarded to be used for purpose of business and profession.
- Movement will be made through delivery challan and eway bill.
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Frah Saeed Answered question September 1, 2020