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Material Sometimes Modvatable sometimes Non Modvatable

Former Member
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Hi,

We have come across a scenerio where the material is cenvatable sometimes & nocenvatable sometimes.

The scenerios is mentioned below.

Cement is procured for maintenance purpose then No modvatable can be claimed.

If the same material is procured for production purpose then modvat can be claimed.How to tackle this scenerio??

We are in TAXINN.

Biswajit

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Hi,

May be Purchasing people know for which purpose they are going to procure.

If procurement for maintenance purpose then No modvatable can be claimed.

Use Internal Excise conditions at pricing procedure.

If the same material is procured for production purpose then modvat can be claimed.

Use Excise conditions at taxing procedure.

regards

Former Member
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Hi,

You can create two material number for Cement

For Production purpose create Material type : ROH so that stock can be maintained.This is modvatable .In the P.O you can give tax code.

For Maintenance purpose create material type as " Consumable material" so that whatever you procure will not be stock it goes directly to consumption account. In the P.O do not enter tax code

G.Ganesh Kumar