Can anybody clarify the below......
We will capitalize the total value of plant & machinery by the date of Commercial operations declared. If any purchases are made afterwards for the improvement/modification/extension of existing plant & machinery, it will become an addition to the initial machinery value and depreciation will be calculated accordingly.
If there are any purchases after the capitalization date towards repairs & maintenance, which will become revenue expenditure and not form part of fixed asset cost.
So the central excise duty on the purchases made before the COD (commercial operation date) will be claimed in RG23C @ 50% and remaining 50% will be claimed in next financial year. Same procedure will also be followed for Capital purchases made in the following financial years.
Now the question is, claiming of central excise on the purchases made for repairs & maintenance….
It has to be claimed in RG23C because RG23A is related to inputs used for manufacturing of final products. – pls clarify
Whether the claim in RG23C is @ 50% or 100%, because the spares or parts of machinery is a revenue expenditure and not capilitalised – pls clarify.
Can we claim 100% of duty in RG23C – pls clarify.