Piyush (Chief Financial Officer) (38 Points)
10 October 2011If an assessee buys capital good which is received in his factory where he produces excisable final product and after that he gives that capital good to some other person on rent, then can he still claim cenvat credit on such capital good. Please help me on this situation..
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 October 2011
at the time of tranferring the capital goods on rent, he has to reverse the cenvbat credit so availed, after depriciation mentioned in CCR2004
CA Rachit Gupta
(Chartered Accountant)
(1315 Points)
Replied 10 October 2011
Hi piyush...No he can't avail the CCR of such capital goods...
As per rule 3(5) of CCR rules 2004:
If any capital goods removes from the factory as such, the he has to pay the amount equivalent to the credit already booked in respect of such capital goods.
So in the present case, he has to pay the credit booked on such capital goods
HS Negi
(Senior Executive- F&A)
(590 Points)
Replied 12 October 2011
Dear Piyush
No need to reverse full credit so availed. You should to reverse on depreciated value.
Regards
HS Negi
CA Rachit Gupta
(Chartered Accountant)
(1315 Points)
Replied 12 October 2011
Yes....Agreed with Mr.HS Negi....
If you remove the capital goods after using in the factory..then you have to reverse the depreciated figure of CCR...but if you remove as such(i.e. without using), then you have to reverse the ccr already booked..
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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