22 January 2009
Material purchased to erect building. The material bills are inclusive of excise. The material cost( basic) is capitalised to building. Query: CENVAT paid on input material , whether to claim credit @ 50% AS CAPITAL INPUT or to claim 100% as normal input. Pl guide. Thanks in advance CA Anand U Patankar
01 February 2009
There is no legal provision which deny this cenvat, as after new cenvat rules, scope of cenvat has been incresed. Regarding inputs or capital goods, Cenvat credit rule specifically says that such n such goods are capital goods. Look at the definition of capital goods in cenvat credit rules. Goods not falling under those are inputs, even when they may be capital goods for accounting principles.
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