diff. b'vn availment nd utilisation of cenvat credit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 January 2010
pls give me the exect idea about the availment of the cenvat credit nd utilisation of cenvat credit?
IS it same that avil=take the credit? than what do u mean by take the credit? because take and utisilse in the such case is like the same meaning na?
IS it same that avil=take the credit? than what do u mean by take the credit? because take and utisilse in the such case is like the same meaning na?
30 January 2010
Dear Anonymous utilisation of cenvat credit means. Adjustment of any service tax liability against avail cenvat credit. Both taking credit and utilisation of cenvat both are different concept.
30 January 2010
Mr Pragnesh is right.
To explain further:
Credit taken or availment of credit differs from utilisation of credit.
1.Credit availed or taken on input/ capital goods/ input services when one buy these goods and pay excise duty or service tax on them.
2.Credit utilisation means- utilisation of credit availed in discharging theExcise duty/ service tax liability of finished goods or service.
Eg. Assessee has purchased any input – (raw material) of Rs. 116 ( Basic-100 and Excise duty Rs. 14 Other cost.) assumed NIL. Now Assessee can avail credit of Rs. 14 paid on such purchases of input.
Assessee manufactures a finished product and sales them at Rs. 150 ( Suppose Rs. 150 include excise duty element of Rs. 16). This 16 Rs. Excise duty liability Is to be paid to Central excise dept (Govt) as per rules. Assesse can utilise Rs. 14 of cenvat credit availed on purchase of input raw material and balance 2 Rs pay in cash through PLA.
To explain further:
Credit taken or availment of credit differs from utilisation of credit.
1.Credit availed or taken on input/ capital goods/ input services when one buy these goods and pay excise duty or service tax on them.
2.Credit utilisation means- utilisation of credit availed in discharging theExcise duty/ service tax liability of finished goods or service.
Eg. Assessee has purchased any input – (raw material) of Rs. 116 ( Basic-100 and Excise duty Rs. 14 Other cost.) assumed NIL. Now Assessee can avail credit of Rs. 14 paid on such purchases of input.
Assessee manufactures a finished product and sales them at Rs. 150 ( Suppose Rs. 150 include excise duty element of Rs. 16). This 16 Rs. Excise duty liability Is to be paid to Central excise dept (Govt) as per rules. Assesse can utilise Rs. 14 of cenvat credit availed on purchase of input raw material and balance 2 Rs pay in cash through PLA.
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