Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Timebar for availing Cenvat Credit on Capital goods

Vipin (Audit) (33 Points)

11 December 2007

i would like to know if there is any timebar within which the cenvat credit on capital goods can be availed

Reply
Follow
Share

6 Replies

Sumit (CA Practice ) (675 Points)
Replied 11 December 2007

As per Rule4(2), the cenvat credit in respect of capital goods shall be taken for an amount not exceeding 50% in the same financial year and the balance credit can be taken in any subsequent financial year. Sumit

Upgrade to CAclubindia Pro. Subscribe Now!

Ruchika Gupta (Chartered Accountant) (247 Points)
Replied 13 December 2007

Provided, the capital goods are still in possession in such subsequent year (except in case of components, spares, accessories, refractory and refractories materials, moulds and dies).

Pritam (CA) (95 Points)
Replied 14 December 2007

There is no time bar in Cenvat Credit Rules. Also in one of the judgments (SAIL India) it was held that as there is no time limit cenvat can be availed any time. But for practical reason, in indutry, credit is availed in maximum 1 yr.

shyam kishor porwal (Chartered Accountant) (183 Points)
Replied 21 December 2007

no time bar for using cenvat credit on capital goods. If assets is in possession. Only 50% in first year.

(Guest)

Originally posted by :Sumit
"	As per Rule4(2), the cenvat credit in respect of capital goods shall be taken for an amount not exceeding 50% in the same financial year and the balance credit can be taken in any subsequent financial year. Sumit	"

Is there any time limit for availing credit on inputs, please mail to my id please since one input credit in feb was missed out

Upgrade to CAclubindia Pro. Subscribe Now!

Sanjay Dwivedi (Advocate & Consultant) (143 Points)
Replied 10 October 2008

Rule permits credit immediately on receipt of the inputs in the factory. No time limit is prescribed within which the credit must be taken. However, it is a common principle that where no time limit has been prescribed for doing a thing, it must be performed within reasonable time. One year period has been considered (by Tribunals) reasonable for taking credits on the inputs. This is based on the fact that the time limit for issuing a notice is also one year.