Cenvat Credit on Education Cess
This query is : Resolved
25 June 2010
Whether cenvat credit on Education cess and higher education cess is allowable on inputs when they are purchased from 100% EOU. Any CESTAT DECISION available if decided. Your Expert Comments please.
25 June 2010
Rule 3(7)of CENVAT credit
Notwithstanding anything contained in sub-rule (1) and sub-rule (4),-
(a) CENVAT credit in respect of inputs or capital goods produced or manufactured, by a hundred per cent. export-oriented undertaking or by a unit in an Electronic Hardware Technology Park or in a Software Technology Park other than a unit which pays excise duty levied under section 3 of the Excise Act used in the manufacture of the final products or in providing an output service, in any other place in India, in case the unit pays excise duty under section 3 of the Excise Act read with serial number 2 of the notification No. 23/2003-Central Excise, shall be admissible equivalent to the amount calculated in the following manner, namely:-
Fifty per cent. of [X multiplied by {(1+BCD/400) multiplied by (CVD/100)}], where BCD and CVD denote ad valorem rates, in per cent., of basic customs duty and additional duty of customs leviable on the inputs or the capital goods respectively and X denotes the assessable value.
Provided that the CENVAT credit in respect of inputs and capital goods cleared on or after 1st March, 2006 but before 7/9/09 from an export oriented undertaking or by a unit in Electronic Hardware Technology Park or in a Software Technology Park, as the case may be, on which such unit pays excise duty under section 3 of the Excise Act shall be equal to X multiplied by {(1+BCD/200) multiplied by (CVD/100)}.
Notwithstanding anything contained in sub-rule (1) and sub-rule (4),-
(a) CENVAT credit in respect of inputs or capital goods produced or manufactured, by a hundred per cent. export-oriented undertaking or by a unit in an Electronic Hardware Technology Park or in a Software Technology Park other than a unit which pays excise duty levied under section 3 of the Excise Act used in the manufacture of the final products or in providing an output service, in any other place in India, in case the unit pays excise duty under section 3 of the Excise Act read with serial number 2 of the notification No. 23/2003-Central Excise, shall be admissible equivalent to the amount calculated in the following manner, namely:-
Fifty per cent. of [X multiplied by {(1+BCD/400) multiplied by (CVD/100)}], where BCD and CVD denote ad valorem rates, in per cent., of basic customs duty and additional duty of customs leviable on the inputs or the capital goods respectively and X denotes the assessable value.
Provided that the CENVAT credit in respect of inputs and capital goods cleared on or after 1st March, 2006 but before 7/9/09 from an export oriented undertaking or by a unit in Electronic Hardware Technology Park or in a Software Technology Park, as the case may be, on which such unit pays excise duty under section 3 of the Excise Act shall be equal to X multiplied by {(1+BCD/200) multiplied by (CVD/100)}.
25 June 2010
My question is when EOU pays basic customs duty at 50% of 5% whether [1+BCD/400] X [cvd/100]apply or not.The department belatedly amended the notification as a result lot of show cause notice all over the country has been issued.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- IT Return filed defective u/s 139 (9)
- NR GST NUMBER
- Fixed Deposit Claim Relinquishment by the Nominee
- ITR 6 Schedule CFL and UD Issues
- TDS RATE ON RENT PAID TO NRI
- Not a CA , can we prepare balance sheet
- GST Form ADT-02
- TCS ON SOFTWARE SALES
- FREELANCING ACCOUNTANT
- Income Type for interest from government bonds
- Query Regarding on TDS section 194H and 194J
- TDS on purchase of value vouchers for employees ?
- PAYMENT TO OPEN AI AND ENVATO ELEMENT
- From 15CA for remittance by domestic travel agent by to Foreign Destination Management Company.
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
