Suraj Agarwal (Self Practitioner in Income Tax & GST) (782 Points)
15 May 2011Please tell me that in Rule 3(4) of CCR 2004, A SSI can utilize the CENVAT credit only to the extent of such credit is available on the last day of MONTH OR QUARTER..........?? Please clearify it.
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 15 May 2011
| Originally posted by : Suraj Agarwal | ||
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Please tell me that in Rule 3(4) of CCR 2004, A SSI can utilize the CENVAT credit only to the extent of such credit is available on the last day of MONTH OR QUARTER..........?? Please clearify it. |
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The CENvat credit shall be utilised only to the extent such credit is available on the last day of month or quarter for payment of duty or service tax relating to that month or Quarter.
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 15 May 2011
For Examp:
Say op. bal of CENVAT credit in the month of April was Rs. 10, 00, 000. During the month inputs on which Rs. 20,00,000 of cenvat credit is available were purchased.
From 01/05/2011 – 05/05/2011 inputs on which Rs. 5,00,000 of cenvat credit is available were purchased.
Now, duty for finished goods for the month of April was Rs. 32,00,000.
In this case only 30,00,000 of credit can be utilized and balance of Rs. 2,00,000 will have to pay through Account Current.
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