Cenvat

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nirav dankhra

nirav dankhra (Querist)
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22 January 2016 diffrence between capital goods and fixed asset

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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23 January 2016 Capital goods are defined under section 2 of the CENVAT credit Rules 2004. All fixed assets are NOT capital goods for the purpose of excise. Similarly all capital goods may not be fixed assets.
Whether an expense qualifies as a fixed asset depends on the accounting principles.
Similarly whether an expense qualifies as a capital good for excise will be determined from Rule 2