pavazh (Cost Accountant) (68 Points)
05 May 2014hi
we are a manufacture we paid some special addtional duty on customs for import of raw material as well as capital goods . i want to know whether they duty paid by us can claim as cenvat credit ,for capital goods if any 50% in current year & 50% in subsquent year applicable and also we are not going to export ,so the credit i taken can adjust against payment of excise duty .please clarify as earliest.
Thanks in Advance
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 05 May 2014
Sir,
Yes, you can eligible to be taken Addl. Custom duty and same also utilized the further payment of excise duty.
pavazh
(Cost Accountant)
(68 Points)
Replied 07 May 2014
Thank u Harendra kumar
Could u please send the Notification No like that
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 07 May 2014
Sir,
Additional Duty paid u/s 3(5) of Custom Tariff Act (Special CVD) is eligible for Cenvat credit for a manufacurer. In respectb of capital goods, full 100% credit this special CVD (SAD) is available to manufacuter in the first year itself and not restricted to 50% [second proviso to rule 4(2)(a) of Cenvat Credit Rules].
Hope you got if not plz forward the same.
CAclubindia
