Dear Sir,
Can CENVAT Credit be availed on Free Trade Sample ?
Thanks & Regards
Niraj
2 Replies
Z
( )
(2965 Points)
Replied 24 May 2013
Availment of credit is dependent upon fulfiling following rules
Item should be eligible (Input,capital good, input service, rule 2(k),2(a),2(l) resp.)
There must be supporting document (Rule 9)
Only eligible duties (Rule 3)
Received in factory or by service provider (rule 4)
Not bringing in Rule 6
So there is nothing which restricts from taking credit
Logically also, double taxation is to be avoided. Manufacturer of such goods must have paid duty because he can not remove the good without charging Excise duty. If credit is denied to the receiver then duty paid on such goods will add into cost of their final product and when you will do the manufacturing then you will again charge excise duty on it, so there will be double taxation if credit is not admissible
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 22 March 2014
Entire duty paid by supplier-manufacturer is available as credit to user of inputs. But input should be used in the factory by the manufacturer of final product.
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