Cenvat credit

CA Ajit Gajera (Practicing Chartered Accountants)   (124 Points)

04 March 2013  

Dear Friends,

I have a query regarding availment of CENVAT credit. One of my client is a leasing company. They import the machine from china and gives it on financial lease. As per lease agreement all import duty will be paid by company and after that lessee will reimbursee all the duty to our leasing company. 

In this case actually import duty paid by lessee. Therefore, will end user gets the CENVAT credit of CVD @ 12%?????

Lessee is a manufacturer and paid regualar excise duty.

 

Thanks 

Ajit Gajera