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Cenvat query

NIRAJ (EXECUTIVE) (55 Points)

11 January 2013

Dear Sir,
We are setting up a new industry of Grinding Unit (Cement). our query is that what credit we can avail till our plant commence its production.
As, from 01.04.11, the department has withdrawn the credit to setting up of new industry.
further, can we take credit of input services of Legal, Technical, Management, Engineering, Financing Consultancy during setting up of plant. If yes, what are the other services on which we would be able to avail and take cenvat

Regards
Niraj

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2 Replies

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 11 January 2013

Refer to rule 3 of cenvat credit rules whic has been almost fully ammended for conditons for availibilty of cenvat credit.

Further services whic are in negative list for that you cannot take any

credit of service tax & for other taxable services ur allowed only if rules

3above is fully satisfied bt till the time u dont get certificate of

incorporation ,company doesnt come into existence legally so on preoperation business u

may be dissallowed on this ground and futher u have to be registered with

excise and ser tax dept for being eligible for cenvat credit.

wait for other membersto comment...this are my views it may be wrong so just confirm them.

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CA Mitesh Shah (Chartered Accountant) (68 Points)
Replied 11 January 2013

Material purchased during pre-operative period and used for either test run purpose or production will be eligible for input credit. Input service tax will be available from the date co. gets registered itself under service tax. On fixed assets no cenvat credit will be available.