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CENVAT CREDIT ON CAPITAL GOODS, Central Excise. Dear Sir, We are manufacturer of Castings falling under chapter 73 of Central Excise Tariff Act their is change in definition of Input. Input includes capital goods having value less than 10000/ Per Pc.
Credit related to exempted activity Cenvat credit cannot be availed on the inputs, input services and capital goods used for manufacture of exempted goods or exempted services. Exempted services are defined as under: Rule 2(e) of Cenvat Credit Rules defines exempted services to mean a.
CENVAT credit on small capital goods (value below 10000), Central Excise. From 1st April 2016 definition of input includes all capital goods which have a value upto ten thousand rupees per piece hence we are eligible to avail CENVAT credit input in first year only. If in one invoice there are few capital goods which value is below 10000piece and some capital goods have value more than 10000.
Cenvat Credit is available for taxes and duties specified in rules 3(1) No Credit is available if Final product is exempt from duty or tax; If Capital Goods is used partially for manufacture of exempted goods and taxable goods then in such case full Cenvat Credit is allowed. Whereas in case of input amp; input services it is proportionately allow
31/12/2015#0183;#32;CENVAT Credit reversal on writing off of capital Goods: if capital goods is written off from books of accounts (whether goods is physically available), before use then total CENVAT Credit availed on such capital good will be reversed. If letter on this goods is again taken in books of accounts, then reversed CENVAT Credit can again be taken.
30/12/2009#0183;#32;The main pleading from the assessee side in most of the cases has been that the credit will be eligible as capital goods since these are used as spares, components and accessories of capital goods. It has been contended in few cases that it falls under the definition of inputs by virtue of Explanation 2 of definition of #226;Inputs#226; contained in Cenvat credit Rules.
20/12/2015#0183;#32;CENVAT Credit on capital goods can be availed on the amount of duty as reduced by the depreciation already debited in accounts. However, credit can be availed if one can revise the profit and loss account of earlier period by reversing the charge of depreciation.
26/05/2016#0183;#32;(4) No CENVAT credit shall be allowed on capital goods used exclusively in the manufacture of exempted goods or in providing exempted services for a period of two years from the date of commencement of the commercial production or provision of services, as the case may be, other than the final products or output services which are exempt from the whole of the duty of excise leviable
The analogy of the case is that appellant had Cleared goods for domestic consumption at nil rate of duty by availing Notification No. 30/ and clearances for export had been made on payment of 4% duty under Notification No. 29/. During the period input duty credit had not been availed and only capital goods Cenvat credit had been availed in respect of which there is no
Dear Friends, I have difference of opinion here. CENVAT Credit shall not be available on Capital goods under Rule 6(4) if the same are used exclusively in the manufacture of Exempted goods other then the exemption granted on basis of value of quantity or clearances during . The above said Rule 6(4) has been amended vide Notification No. 13/2016CE dated to provide CENVAT
22/06/2015#0183;#32;Cenvat Credit can be availed on capital goods. But the credit should be taken in installments. As per The Cenvat Credit rules, quot;The credit shall be taken only for an amount not exceeding 50% of the duty paid on capital goods in the same financial year in which capital goods is received. The balance 50% shall be taken in the subsequent financial year.
25/04/2016#0183;#32;Post the amendment, capital goods can be used exclusively for manufacture of exempted goods or in providing exempted services up to a period of 2 years. It removes the requirement of use of
12/11/2008#0183;#32;(a) The CENVAT credit shall be allowed even if any capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, reconditioning or for the manufacture of intermediate goods necessary for the final products or any other purpose and it is established from records, challans or memos or any other document produced by the manufacturer or provider of output service taking the CENVAT credit
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