01 July 2016
Ours is a newly established SSI unit,
We have procured Plant and Machinery under Capital Goods ,
Our Range officials are citing the Rule 4(2) of CENVAT Credit rules 2004 and insisting to avail upto only 50% CENVAT Credit on Capital Goods in the current financial year and rest in subsequent year , which also to be reflected in the ER1 return.
But our consultant says SSI units can avail 100% credit in the first year only . .( 6/2010 dt.27-02-2010 second / third proviso to Rule 4(2)(a) as inserted w.e.f 1-4-2010 )
01 July 2016
SSI unit can obtain 100% CENVAT in the 1st year.The complete CENVAT credit may be obtained by SSI unit in 1st year itself. This is the 2nd provision to Rule 4(2)(a) as incorporated w.e.f. 1.4.201.
CAclubindia
