Cenvat credit

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Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2012 If i am not entry made in books and taken cenvat credit in RG23. Is it possible or not ?

Rajnish Singh

Rajnish Singh (Expert)
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15 February 2012 DEAR SIR,
WHEN MATERIALS COME IN THE PREMISES . IT WILL BE TAKEN IN BY RECEIPT NOTE ALL THE RECEIPT NOTE SHOULD BE KNOWK OFF AT THE END OF THE MONTH .

IF MATERIALS RECEIVED AND TAKE ENTY IN THE RG 23 PART 1 BUT LEFT TO TAKE INPUT IN PART 2 THAN YOU CAN ADJUST THIS VIA REVISED RETURN .

OR INTIMATE THE DEPARTMENT IF COMMISSIONER AGREED THAN YOU CAN ADJUST THE INPUT IN NEXT MONTH.

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2012 Dear sir,
But in the case of service, it is possible or not for the above query ?

Thanks

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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19 July 2024 If you have not made an entry in your books but have claimed CENVAT credit in RG23 registers, it raises some important considerations under the CENVAT Credit Rules. Here's a breakdown based on your query:

### CENVAT Credit for Inputs and Capital Goods

1. **Inputs and Capital Goods in Manufacturing**:
- For inputs and capital goods used in manufacturing, you must satisfy certain conditions to claim CENVAT credit. These conditions generally include:
- Receipt of inputs or capital goods in the factory premises.
- Proper invoices or documents indicating payment of excise duty.
- Entry in the RG23 register (part I for inputs, part II for capital goods).

- If you have claimed CENVAT credit in the RG23 register without making an entry in your books, it might indicate non-compliance with documentation requirements. This could lead to potential scrutiny during audits or assessments.

2. **Service Tax Credit**:
- For services, similar rules apply where you need to have:
- Proper invoices or documents supporting payment of service tax.
- Evidence of receipt of services.
- Entries in your books of accounts.

- Like with inputs and capital goods, claiming service tax credit without proper documentation or entries in your books could lead to compliance issues.

### Possible Consequences

- **Audit Scrutiny**: Tax authorities may scrutinize such discrepancies during audits. They will look for matching entries in your books of accounts, invoices, and proper utilization of credit as per the rules.

- **Reversal of Credit**: If discrepancies are found and cannot be rectified, there could be demands for reversal of the credit claimed, along with penalties or interest.

### Recommendations

- **Regular Compliance**: Ensure that all transactions related to inputs, capital goods, and services are properly recorded in your books of accounts.

- **Documentation**: Maintain all invoices, bills, and documents supporting your CENVAT credit claims.

- **Consultation**: It's advisable to consult with a tax professional or Chartered Accountant to review your specific situation. They can provide guidance on rectifying any non-compliance issues and ensure future compliance with tax laws.

In summary, claiming CENVAT credit without corresponding entries in your books of accounts is not compliant with tax regulations. It's essential to maintain proper documentation and adhere to the prescribed procedures to avoid potential penalties and reversals of credit.