Mamatha (ACS) (45 Points)
09 August 2010Dear Friends,
I have a small doubt in taking cenvat credit for capital goods. We had Purchased and received the capital goods in March -10 and entered in books of entry in March -10 itself. But credit (50%)awailed in April -10(mentioned in April month's return). Now my doubt is whether I can take the balance 50% of cenvat credit in 2010-11 or next year?
Regards,
Mamatha Hebbige
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 09 August 2010
credit (50%)taken in April -10.
Cenvat credit allowed when material received. if you have entered in april in RG 23C-part-II & Part-I in april it meens your Machine staet working from april -2010. 50% you have taken abd 50% should be allowed in next year.
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 09 August 2010
Apr 2010 - 50% is utilized means balance 50% to be utillized in the next year
anuj dhingra
(Accounts Executive)
(152 Points)
Replied 09 August 2010
Cenvat is allowed on put to use Basis. u bought Machinery in March 10 but put to use in April 10, u can take credit ( 50 % ) in the financial Year 2010 -11 & Balance fifty percent in FY 2011-12. Ok
Bhavin Bhadra
(Job)
(174 Points)
Replied 09 August 2010
Dear,
AS per my knowledge you can take remaining 50% CANVAT Credit in year 2010-11. The specific provision of the Act, i will be providing you soon.
CA Sanat Pyne
(F.C.A. & M.COM)
(20102 Points)
Replied 09 August 2010
YES, IF YOUR ENTRY IS IN MARCH 2010, THEN YOU CAN TAKE 100% IN 2010-11
BECAUSECREDIT SHOULD BE TAKEN. 50 % IN THE YEAR OF PURCHASE, AND BALANCE NEXT YEAR. IT MEANS IF YOU DOES NOT TAKE THE CREDIT IN THE YEAR OF PURCHASE THEN YOU CAN TAKE 1005 IN THE NEXT YEAR.
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 09 August 2010
Cenvat Credit Rule 4(2)(a) only says that in the year of receipt of capital goods cenvat credit can be taken upto 50% and in your case you have taken 0% credit in the 1st year, so you can take 100% of the credit in the financial year 10-11 [Cenvat credit rule 4(2)(b)].
Azim Khan ACA,CS,CMA*,LLB*
(Proprietor)
(1312 Points)
Replied 09 August 2010
| Agreed with prabhat sir. | ||
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CA. Ritesh Kashyap
(Chartered Accountant)
(54 Points)
Replied 11 August 2010
YOU CAN TAKE 100% CENVAT CREDIT IN F.Y 2010-11 AS THE MACHINE ORIGINALLY PURCHASED IN 2009-10. IN 2009-10 YOU HAVE LIMITATION TO AVAIL CENVAT OF ANY % BUT LESS THAN 50% AND THE BALANCE IN NEXT YEAR i.e IN 2010-11.
FOR REFERENCE YOU MAY REFER RULE 4(2)(a) OF CCR 2004
RAMMOHAN RAO SWAMI
(CHIEF CONSULTANT)
(30 Points)
Replied 12 August 2010
My Openion : Material Received In March 2010 that means u are taken RG23C Part I Entry in F.Y.2009-2010, It means u are eligible to take 50% credit in F.Y.2009-2010 ( RG23C Part II ) , next 50% Credit to be taken in F.Y.2010-2011
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