Our Co. is engaging in Importing of Raw Materials & Capex from Outside India, We have huge amount of Unutilized Cenvat Credits available in the books,
whether Unutilised Cenvat Credits can set off in the follwing circumstances,
Company - A - Operation in Outside India Company - B - Operation in India -Subsidiary of A (MFG & supply to OEM Dom ) Company - C - Operation in India - Subsidiary of A (MFG & supply to OEM Dom )
Company - A has 100% Shares in Company C & 60% Shares in Company B.
Whether Company C's Unutilised Cenvat Credits can be utilised by Company B. If Yes, Please let me know the Rules & Procedures to be followed.
19 February 2010
Assuming that the companies in India are manufacturing excisable goods or providing taxable services, credit is available only ot the company and not to the subsidiaries. Only possibility for refund is if used up in export of goods or taxable services exported.
CAclubindia
