cenvat credit of capital goods
Querist : Anonymous
we are service providing company.
we purchased computers under excise invoice and it is useing only in HR AND FINANCE departmens. not useing directly in providing output service.
can we eligible to utilise excise duty paid on capital goods aginst output service tax.
In my Opinion you will not be eligible for taking CCR of excise duty paid on Capital goods as it can be claimed only by manufacturer.
It is reproduced for your information.
(4) No CENVAT credit shall be allowed on capital goods which are used exclusively in the manufacture of exempted goods or in providing exempted services, other than the final products which are exempt from the whole of the duty of excise leviable thereon under any notification where exemption is granted based upon the value or quantity of clearances made in a financial year.
When you say the Computers are being used in HR & Finance function exclusively, you may not get the input credit on Capital goods. There are various decided cases in favour of the department.
Querist : Anonymous
As per rule 4(2)(a) of the cenvat credit rules 2004 excise duty paid on capital goods can be utilized as input credit for the payment of output service tax.
further it was given in the capital goods defintion that, capital goods used for providing out put service can take cenvat credit.
here used means whether directly or indirectly.
please kindly clarify the same
Querist : Anonymous
As per rule 4(2)(a) of the cenvat credit rules 2004 excise duty paid on capital goods can be utilized as input credit for the payment of output service tax.
further it was given in the capital goods defintion that, capital goods used for providing out put service can take cenvat credit.
here used means whether directly or indirectly.
please kindly clarify the same
When you say the computers are being used in HR &Finance & not useing directly in providing output service, THIS ITSELF SHOWS THAT YOU ARE NOT ELIGIBLE TO GET CENVAT CREDIT.
When you say "we purchased computers under excise invoice and it is useing only in HR AND FINANCE departmens. not useing directly in providing output service" What does it mean? It is not used in providing TAXABLE OUTPUT SERVICE ISN'T?
In case of a manufacturer, even if the capital goods are used partly for excisable finished goods, Credit is available, Whereas in case of Service provider, the capital goods should used FOR PROVIDING OUTPUT SERVICE.
Even if you proceed to avail the input credit, there are few restriction like 50% is only abailable in the year of purchse, Depreciation is not allowed in respect of duty amount etc.,
Click here to login now
Similar Resolved Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
