Cenvat credit on capital goods

This query is : Resolved

Navindra Gawade (Querist)
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17 September 2016 Sir,

We purchase a machine in March month gate inward in March but machine installed after two month in May.Can we availed credit in march

My query is?

Machine installation is mandatory to availed Capital Goods credit?

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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17 September 2016 Yes, As per Cenvat credit Rule 4(2), the credit on capital goods can be taken at any time during the year provided it is received in factory and 50% of the duty paid is availed in the first year and remaining 50% in subsequent years.
Thanks.