06 June 2012
as per the amendment to rule 4 " a proviso has been inserted in both the aforesaid sub-rules to provide that the CENVAT credit in respect of inputs or/and capital goods may be taken by the provider of output service when the inputs or/and capital goods are delivered to such service provider, subject to maintenance of documentary evidence of delivery and location of the inputs and capital goods"
Does this mean Cenvat input can be taken @ 100% in the year of receipt of capital goods as against 50% earlier.
13 June 2012
No, we are allowed only to take 50% in this year and balance in next year and Input 100%.
The above change is once you prepare the Invoice & delviered the material, immediately you can take the credit. Earlier, for CG - Installation was required. Now, it becomes liberal.
This does not mean that, we can avail 100% Cenvat credit in the same year for C.G. This clarifies that, after receipt of Input (100%)/ capital goods (50-50%) within the factory premises, immediately we can avail the credit, earlier for C.G., it is required to 'Put into the use' by way of installing & commissioning.
CAclubindia
