C A ARUN KUMAR ABEL (Article Assitant) (41 Points)
11 April 2016Dear Sir,
One of my Client manufacturing Rail Coaches for ICF in chennai. As per 2016 - 17 Budget Basic Excise Duty on parts of railway and tramway locomotive reduced to 6%. I have paid 12.5% Excise duty for Input Material and taken cenvat credit. I have adjusted agianst 6% Duty Payable. I want to know whether i have to reverse the Excess Cenvat Credit or can i utilize the full duty. Please Guide me.
My mail Id - arunkumarabel @ gmail.com.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 12 April 2016
cenvat credit is not obligated to get reversed unless the goods are getting full exemptedor carry zero rate of duty
C A ARUN KUMAR ABEL
(Article Assitant)
(41 Points)
Replied 12 April 2016
So i can utilize 12.5% Cenvat Credit.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 12 April 2016
cenvat credit availed on inputs does not co relate 1 to 1 always with the output,
in CCR2004 reversal of duty is obligated only when the goods are getting exempt by virtue of any notification, for reduced rates of duty, Cenvat Credit is not barred at any point
though if your main activity is only railway supply, then it would accumulate just in books, as there is no way to claim it , unless you have other taxable manufacuring activity.
C A ARUN KUMAR ABEL
(Article Assitant)
(41 Points)
Replied 12 April 2016
Sir Thank you For your kind reply.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 13 April 2016
The rate would be in time increased to 12,5%, Therefore you could accumulate. If GST comes the credit canbe converted.,
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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