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Time limit for availing cenvat credit on capital goods

Uthirabathi (Senior Executive -Finance & Accounts) (26 Points)

10 May 2016

Dear Experts we have purchased capital goods in the year 2013 but we have missed to avail cenvat credit. can we avail now? please clarify my doubt

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9 Replies

R.P.Singh (Advocate & Consultant) (1173 Points)
Replied 11 May 2016

Dear Sir,

As per rule 4 third proviso of CENVAT Credit Rules 2004, the time limit for availment of CENVAT credit is one year.

In your case the time is beyond the prescribed limit. Being so, you are not entitle for CENVAT Credit.

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Ankush (Student) (1369 Points)
Replied 12 May 2016

In the case of capital goods there is no time limit with respect to availing credit. The rules state that up to 50% can be claimed in first year and the balance in any subsequent financial year.

Uthirabathi (Senior Executive -Finance & Accounts) (26 Points)
Replied 12 May 2016

Thanks lot Mr.Anurag, we have consulted with our tax consultant & Lawyer, he also expressed the same as you said.

we can avail credit

Uthirabathi (Senior Executive -Finance & Accounts) (26 Points)
Replied 12 May 2016

Thank you sir for your reply, the mentioned rule talk about only Input & Service tax credit, but for capital goods there is no time limit, only thing we can avail 50% and balance can be availed in subsequent year.

Thank you sir.

R.P.Singh (Advocate & Consultant) (1173 Points)
Replied 12 May 2016

Yes

Mr. Anurag is right. There is no time limit for availment of CENVAT credit in the case of capital goods. My aforesaid answer is regarding to inputs not the capital goods.

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satya (Executive Excise) (1839 Points)
Replied 12 May 2016

Yes, Anurag version is correct,

The one year condition is applicable for only Inputs n Input Services.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 14 May 2016

No time limit for capital goods but condition of non claiming of depreciation under income tax. Machines purchased in 2013 credit available in 2016.

However the depreciation on the whole value ( including the credit amount) may have been claimed and returns filed under income tax. There is a bar on the same in the CCR.

Therefore if the credit for past years is to be claimed then a revsied return offerring the credit portion for income tax, payment of tax with interest needs tobe done. After that the credit can be claimed.

2 Like

sanjith kotni (Articled assistant) (663 Points)
Replied 03 May 2017

cenvat ralating to written down value of asset can be claimed and the same to be reduced from the written down value.

Ashish Pandya (2 Points)
Replied 06 April 2018

Dear, Experts we are at Manufacture firm. we have capital bill dated 27.02.2014 while we taken ECC number in 2015. We taken credit on 01.03.2015. it is ok.???

what is rule & cause.??