FearDoom (Nil) (26 Points)
14 February 2010
As the capital goods are sold after being put to use in the year of purchase itself so how much credit will be availed in the year of purchase 50% or 100%? Under Rule 3, of CENVAT Credit Rules 2004, it has been given that, if the capital goods are removed as such in the year of purchase 100% credit will be available in the year of purchase, but nothing is given if the goods are removed after being put to use in the year of purchase.
FearDoom
(Nil)
(26 Points)
Replied 15 February 2010
Thank you brother. Then the remaining 50% can be claimed in subsequent year???? But as per rule, Capital goods must be in the possession to avail the remaining credit in the subsequent years.
PRATEEK RAJ SHRIVASTAV
(Assistant Manager Finance & Accounts )
(109 Points)
Replied 26 July 2010
IF A COMPANY PURCHASE A OFFICE PREMISES AND PAY THE AMT IN INSTALLMENTS FROM A BUILDERS.
BUILDERS CHARGED SERVICE TAX ON EACH INSTALLMENT.
CAN WE TAKE CREDIT OF CENVAT ON SUCH INSTALLMENTS & HOW ?
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 27 July 2010
Regarding capital goods received in the factory the Cenvat Credit Up to 50% can be taken in the year of purchase. however if the capital goods on which Cenvat Credit has been taken is removed after being used, The manufacture or provider of output service shall pay an amount equal to the Cenvat Credit taken on Said Capital Goods reduced by percentage points calculated by state line method as specified in the rules ( Rule 3 of the Cenvat Credit rule).
In your case it is at the rate of 2.5% for each quater.
gurunadharao nerella
(student)
(21 Points)
Replied 30 July 2010
is there any change in the availment of cenvat credit in for the FY 2010--11(AY 11-12)????????????????
CA Tarun Jagdish
(8893495263)
(153 Points)
Replied 21 May 2012
X Ltd Bought machinery worth 1 lac on which he paid 10,000 as duty . He passed the following entry
Machinery a/c Dr 100000
Cenvat a/c dr 5000
Cenvat (Next year) 5000
To Bank 110000
There was no excise duty payable. So the entire credit was constant, Then these goods were removed as such. Do we have to pay duty. Because we have no yet utilized that duty .
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
CAclubindia
