Excise cenvat credit and depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 December 2015 Dear Experts,
A excisable mfg concern has purchased machinery Rs. 200000/- Rs. 25000/- ED total 225000/- in FY 2015-16, however 50% ED cenvet has utilize in this existing FY, and remaining 50% will be subsequent in next FY, kindly clarify my query.1) as i have availed 50% ED cenvat in FY 2015-16, hence can we claim 15% depreciation on 212500/- or on 200000/- in FY 2015-16, 2) and in FY 2016-17 weather we will be entitletd to claim depreciation on 112500/- or on only 200000/- even in FY 2016-17,

Regard
Tarun thakur

Ankur Singhal

Ankur Singhal (Expert)
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21 December 2015 Dear Tarun

1. You can claim depreciation only on Rs.200000/- i.e net of excise.

2. In next Year Claim depreciation on Rs. 1,70,000/- i.e (15% depn deducted from 200000)

Alternate way:
You can claim depreciation on Rs.225000/- only if you do not claim cenvet credit of Rs.25000/-(i.e Excise duty)