HARI HARA KRISHNAN.S (STUDENT) (75 Points)
14 October 2011
Yash Anandkumar Mandavia
(Practising Chartered Accountant)
(184 Points)
Replied 14 October 2011
As far as my knowledge of Cenvat Credit Rules is concerned.... Interest is payable either on short taxes levied or not levied at all. Moreover, you have only availed the credit and not utilised the same. So, in my humble opinion, there is no need to pay any kind of interest
CA SUMiT PATWARi
(Chartered Accountant)
(1441 Points)
Replied 14 October 2011
You have inturn taken less cenvat credit.
Had you taken cenvat credit treating it as input goods, you were entitled to 100% cenvat credit, but since you considered it as cenvat credit on capital good, you could claim only 50%.
So I don't think you would be liable to any interest.
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But if you have claimed cenvat credit but were not eligible for, then you have to pay interest. As far as my knowledge goes there is a recent circular, that even if you dont utilise the cenvat credit after claiming it by mistake, it would tantamount to utilisation and hence you may be liable to interest.
Please correct if i am wrong!
CA Rachit Gupta
(Chartered Accountant)
(1315 Points)
Replied 14 October 2011
Yes Sumit...as per recent circular...Interest is chargeable from the date of wrogly availed till it is rectified...
See circular No. 942/03/2011
Kunal
(Risk Analyst)
(299 Points)
Replied 15 October 2011
Ashutosh Biswal
(Asst.Manager Finance)
(283 Points)
Replied 16 October 2011
No interest is liable in your case ... you can avail the remaining 50% cenvat in next credit utilisation
satya
(Executive Excise)
(1839 Points)
Replied 16 October 2011
Dear Hari Hara KS,
| Originally posted by : Rachit Gupta | ||
 |
Yes Sumit...as per recent circular...Interest is chargeable from the date of wrogly availed till it is rectified... See circular No. 942/03/2011 |
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openion, because rules are amended, Cenvat Credit wrongly availed means interest payable from the date of CC taken, date of rectified entry/reversal entry date with @ 18% interest.
HS Negi
(Senior Executive- F&A)
(590 Points)
Replied 19 October 2011
Dear Hari
A dealer is not liable to avail the cenvat credit . He can just pass on the cenvat credit in proportionate to qty removed. Only a manufacturer can calim the cenvat credit and can set off this into his liability of excise duty.
Please clear the concept in case of dealer & manufacturer registration.
Regards
HS Negi
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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