Input credit taken:

This query is : Resolved

Ramesh (Querist)
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31 May 2012 dear sir/mam

i am an accountant in starch ind.,
as per ssi we shall not cross accessable value 1,50,000/-.(april-may)
we purchased material with cenvat input.these input can be taken at the time of entering in excise.

Vikash Maheshwari

Vikash Maheshwari (Expert)
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31 May 2012 Dear Ramesh,
First a small correction,to avail the benefits of SSI,the turnover of the unit must not exceed Rs.150 lakh and not Rs.150,000.
The SSI scheme is Optional.You can choose the following options”
Option 1: Pay the normal rate of duty on the goods cleared and avail cenvat credit on the inputs.
Option 2: Avail the exemption scheme and forgo the claim of Cenvat Credit on inputs till you reach the turnover of Rs. 150 Lakhs.
In both the cases the option shall be exercised before effecting the first clearances at the normal rate of duty. Such option shall not be withdrawn during the remaining part of the financial year.However the manufacturer can take the credit on capital goods and use the same for payment of normal duty after he crosses the basic exemption limit of Rs. 150 Lakhs.
Hope this helps……
Regards,
Vikash Maheshwari