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CENVAT CREDIT OF GODOWN

Sushil Vaidya (Sr.Officer Purchase) (74 Points)

30 April 2010

If we store excisable raw material in hired godown which is out of factory. Is there is any rule of excise to take cenvat credit of that RM.

Please reply...

Regards,

Sushil.

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1 Replies

Ashish Ojha (Chartered Accountant) (469 Points)
Replied 02 May 2010

I think You cannot take credit in such case... There is Provision in Rule 8 of Cenvat Credit Rules, by which If we get permission of Divisional AC/DC, he may allow us to store Inputs outside the factory and in that case we can take credit of such inputs....

Anyways, Whenever such raw material enters your factory for processing/production, book your credit on it.... but you cant claim it on thta RM lying in that hired godown.