Mahabaleshwara Rao (director) (197 Points)
21 February 2011A manufacturing Industry bought machnery by paying central excise duty. The manjufacturing activity may take one year time as the plant setup takes one year time.
Wherther central excise paid on machinery can be taken into account in the monthy return and carryforawrd the same or whether it should be taken in total once the production process starts.
Also whether service tax paid on civil work of the factory - wherther CENVAT credit is available.
Thanx in advance..
soni chauhan
(Service)
(670 Points)
Replied 23 February 2011
Machinery comes under the capital items So as per cenvat rules u can take 50% Cenvat in current year & other 50% in the next financial year.
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 25 February 2011
1) Availament of credit is immediate on receipt of the machinery into the factory. Cenvat rule does not specify usage as condition for availment of credit.
2)Creit to be taken in 2 instalments. Upto 50% in the year of purhcase (Year = FY). Remaining credit in the second year.
Refer Rule 4 of cenvat credit rules
Regards
Dayananda
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 25 February 2011
no input credit on civil work for excise or service tax.
CAclubindia
