Availment of cenvat credit on capital goods
This query is : Open
26 July 2016
Sir,
We are a SSI unit registered with Excise since 2005 .Commenced new project in manufacturing of intermediate products.we have procured machinery in Nov14 for the same.The commercial production commenced in Nov'15.
Can we avail the cenvat credit in Jul'16 ?
As per Notification 21/2014 ce(nt),the time limit is applicable for Rule 4(1) and 4(7).These two rules talk about taking credit in respect of inputs and input services.
Rule 4 (2) talks about taking credit on capital goods. The above proviso prescribing time limit for taking credit is not inserted in rule 4(2). Therefore on capital goods the credit can be taken at any time but on the condition that the said capital goods should be received in the factory of manufacture.
Now the capital goods are received in the factory.
Kindly suggest that can we avail the input cenvat credit in Jul'16?
Thanks
We are a SSI unit registered with Excise since 2005 .Commenced new project in manufacturing of intermediate products.we have procured machinery in Nov14 for the same.The commercial production commenced in Nov'15.
Can we avail the cenvat credit in Jul'16 ?
As per Notification 21/2014 ce(nt),the time limit is applicable for Rule 4(1) and 4(7).These two rules talk about taking credit in respect of inputs and input services.
Rule 4 (2) talks about taking credit on capital goods. The above proviso prescribing time limit for taking credit is not inserted in rule 4(2). Therefore on capital goods the credit can be taken at any time but on the condition that the said capital goods should be received in the factory of manufacture.
Now the capital goods are received in the factory.
Kindly suggest that can we avail the input cenvat credit in Jul'16?
Thanks
04 August 2016
If you have started the duty payment just then you can take the cenvat credit on accumulated inputs and capital goods.
07 August 2016
Thanks Sir but we have not declared the same in the return ER1.still can we take the input
09 August 2016
Sir Thank you but we have not declared the cenvat in ER1 can we still take the credit
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