21 January 2010
For a running factory under excise (non-ssi) if cenvat credit is taken on capital goods for installation/erection of a captive power plant, before generation of power starts, is it irregular? Is there any stipulation that 50% of cenvat credit would be available only after the generation of power starts, irrespective of financial years regulation?
21 January 2010
No, there is no stipulation for taking 50% credit on capital goods only after commencing production through those machines. 50% credit is available in the finanical year of purchase and 50% in the next financial year. If any one is having other opinin, please let me also be updated.
Thanks.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
25 January 2010
Yes I am inclined to accept your view. But earlier there was a 'put to use' condition. I am not sure whether is is completely done away with.
CAclubindia
