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Cenvat credit

Gaurav (Manager) (50 Points)

22 January 2013

Hi
Need your help on 1 thing. I am Gaurav, intending to start a fabrication workshop in Kundli near to Sonipat. I have struck on Cenvat issue. I want to start & register under SME so as to avail SME loan also for which limit for excise is 150L however untill I reach this limit I will not be able to register under excise & therefore there will be loss of Cenvat on raw materials & due to this I am not competetive in the market due to higher input cost. How to crack this? Need your help on this

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5 Replies

Rakshit (practising) (338 Points)
Replied 26 January 2013

You can opt not to avail exemption from duty instead pay excise duty from the first very clearance and avail Cenvat credit, even within 150 lakhs.

Raksh*t Advocate

09810525780

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Gaurav (Manager) (50 Points)
Replied 26 January 2013

Thanks Raksh*t

I was not aware that the exemption is not compulsary. If it is so, then I would definitely prefer to register right from the start so as to avail cenvat credit. Many thanks.

Gaurav (Manager) (50 Points)
Replied 28 January 2013

Dear Raksh*t

I also want to know that while carrying out t\he fabrication work, I will hire a manpower contractor who will raise his invoice which will include service tax.

Can I take credit of that service tax? If yes what would be the procedure.

Thanks, Gaurav

Jitesh Chowdhury (CA) (58 Points)
Replied 29 January 2013

Gaurav,

I would like to know what type of fabriation you intend to do and for whom (whether manufacturers or others). Since in case of fabrication, most of the times the manufacturers of the final goods transfer the goods to the fabricator under notification no. 214/86 by virtue of which no excise duty is chargeable by the fabricator.