24 July 2013
can we take input credit on purchase of consumables, spares like bearings, bolts.......and is it necessary they are to be used during production process ,if it is a seasonal manufacturing establishment
24 July 2013
It is specified in CENVAT CREDIT RULE, that the input which is dutiable and consumed into manufacturing of dutiable goods then only input credit is available. In ur case, 1st determine the type of expense, May it fall down under the fixed asset related to parts of machinery of dutiable goods (as per AS 10) and so, credit is availed on capital goods.
25 July 2013
I think the question is VAT input i.e ITC and not on cenvat credit rule. Any how, the consumables are not considered as eligible input tax credit unless they are traded (bought and sold).
CAclubindia
