AJM_India (Director) (58 Points)
09 November 2011Hi All:
we are contract manufacturers of Branded Readymade Garments suppliying to various department stores across India.
Can CENVAT be claimed against Excise Duty discharged on Branded Readymade Garments.
If yes, is there a diffrential rate of Excise Duty if CENVAT is claimed versus CENVAT is not claimed.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 09 November 2011
If you are paying 1% duty cenvat credit is not admissible. If duty is paiod @ 5%, credit can be taken.
AJM_India
(Director)
(58 Points)
Replied 09 November 2011
Thanks for your reply Mr Unikrishnan.
But on Branded Readymade Garments the Excise duty is neither 1% nor 5%.
The excise duty is 10% on 45% of MRP value, Effectively it works to 4.50% on MRP.
Kindly cite circular Ref no where 1% Excise Duty is cited without availing CENVAT credit.
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