exxise credit..

This query is : Resolved

Kushagra (Querist)
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15 January 2009 if a company pays excise duty over its purchase but there is no output tax applicable neither is it an EOU so can such a comp avail Excise credit,,,.?? or is there any provision that excies credit shown in books as receivable is to be utilized within a specified time frame....???

Jitender

Jitender (Expert)
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16 January 2009 if there is no output duty is payable then treat input credit as expense becz u can't get the refund.

Kushagra

Kushagra (Querist)
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16 January 2009 but suppose as of now there is no output excise payable by the company but subsequently if it starts to manufacture sm item which attracts Excise than can they set off accumulated excise credit with the output,.....?? Besides is there any limitation over the no of years to carry forward accumulated credit.....??

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Rajesh Kumar

Rajesh Kumar (Expert)
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18 January 2009 There is no limitaion as to when the credit is to be utilised.
However, the fundamental requirement of credit is that the input is being used in the process of manufacture, resulting a product on which Central Excise duty is payable. Presently no excise duty is payable, and hence the inputs are not being used in the manner. Hence no credit can be taken.
If, by chance you start manufacturing, you will be entitled to take credit on the materials lying in stock.