How to take cenvat credit on capital good

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Amit Prakash Singh

Accountant

295 Points Joined March 2010

Dear All expert,

We have manufacturing division in Delhir egisterd in excise. we are doing only labeling packing of raw material of motor vehicle part .chapter heading in excise 87089900 ,We have purchase Laser Marking Machine one piece form Ahmedabad invoice bill dated 17.01.2013.bill detail as below :-

Amount = 11,12,500 /-

Excise Duty 12%= 1,33,500 /-

Edu.Cess 2% = 2670 /-

S.H.E.D = 1335 /-

CST = 25000 /-

Total Value = 1275005 /-

Please explain how this capital good will be treated in excise?

how we will take cenvat credit on this capital good?

Please help

Thanks and Regards

Amit Singh

Replies (3)

Rakshit

practising

338 Points Joined November 2011

You can use erlier prescribed RG23C Part-II register for showing credit entries. If your turnover for the last year was below Rs. 4 Crores , you can take credit 100% of the excise duty paid on the Capital Goods, otherwise a credit upto 50% of the duty paid can be taken.

Raksh*t Verma Advocate

9810525780