There was a sale by EOU unit to manufacturing unit in DTA.The invoice shows the following tax break up.
Invoice Amt - 100 BCD - 3.75 CVD - 12.45 ED Cess on CVD - Nil SHE Cess on CVD - Nil ED Cess 2% - 0.324 SHE Cess 1% - 0.162 Total DTA Duty - 16.686 ED Cess on DTA 2% - 0.33372 SHE Cess 1% - 0.16686 VAT @ 12.5% - 14.65
Pls clarify which tax portion can be availed as Cenvat Credit?
04 February 2013
Rule 3(7)(a) of the Cenvat Credit Rules 2004 read with Notification No. 23/2003 dated March 31, 2003 specifies that Cenvat credit would be allowed for only 50% of the amount paid on countervailing duty for purchases made from the 100% EOU. As the components have been purchased in a domestic tariff area from the 100% EOU, Cenvat credit would be available up to 50% of the duty indicated in the invoices raised by the EOU.
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