12 June 2010
Availment of Duty credit on capital goods:- > _ > *Rule 4(2) of Cenvat Credit rules (2)(a) and 4(2)(b) , the manufacturer > is permitted to take credit in the finacial year in which the capital > goods are received , for an amount not exceeding 50 %of the specified > duty paid on the capital goods. > The balance credit is permitted to be taken 'in any finacial year > subsequent to the fiancial year in which the capital goods were received > in the factory of the manufacturer subject to the condition that the > capital goods continue to be in the posseession of the manufacturer at > the time of availing the balance credit. > > for example :- If the capital goods are received in the factory on say, > 01-08-2008 , duty credit can be taken at any time between 01-08-2008 to > 31-02-2009 - 50%. > Balance on Next Fiancial year 2009-2010. > > *_Reversel of cenvat credit in case of sale capital goods after 3years > or so. > _ > CENVAT Rule 3 sub para (5) state that : When capital goods, on which > CENVAT credits has been taken , are removed as such from the the > factory the manufacturer of the fianl products shall pay an equal to > the credit availed in respect of such capital goods. > > *Provided that *_(Insert vide notification no. 39/2007-C.E(N.T), dated > 13-11-2007 w.e.f 13.11.2007_* > > I_*f the capital goods , on which CENVAT Credits has been taken, are > removed after being used, the manufaturer shall pay an amount equal to > the CENVAT credit taken on the said capital goods reduced by 2.5% for > each quarter of the year from the date of taking the CENVAT Credit. >
15 June 2010
If the capital goods are removed in 2nd year, first you have to claim remaining 50% , afterward, You have to pay duty i.e reverse duty Total Duty less 2.5% of total duty multiply no of quarter .
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