Cenvat Credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2011 My query is;

We are a manufacturing concern and a ssi unit, we have taken excise registration and given intimation to the department that we will take the benefit of notification no. 8/2003.

1. For the year 2010-11 my turnover is 140 Lacs, hence i have do not pay any excise as we are an ssi. more over we have rs. 25 lacs available as cenvat credit on capital goods and rs.3.5 lacs available as service tax credit available on installation erection of plant and machinery used for manufacturing of the final product.will we be allowed to c/f the cenvat credit of rs. 25+3.5 lacs in the following year. and when in the following year our turnover crosses rs. 150 lacs. than will we be first allowed to take the benefit of cenvat credit available??

2. it is said that in the first year we are eligible to take 50% of the cenvat credit of the capital goods. than in our case 2010-11 will be the first year or 2011-12??

3. the service tax paid on the bill of civil engineer for the construction of shed, foundation and factory building is eligible to be taken as cenvat credit??

Rajesh Kumar

Rajesh Kumar (Expert)
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08 February 2011 1.The Capital goods credit shall be carried forward.
2.2010-11 is the first financial year. Rest of the credit can be taken in 01.04.2011.
3.The notification 8/2003 is silent on availment of credit on input services. In my view, credit shall not be available.