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CVD Credit on Capital goods

EXICSE (Legacy) 2798 views 2 replies

What  are all provison for taking CENVAT credit in Capital goods?

Suppose  we have Impoted any Capital goods and we are paying CVD and Additional duty on that material  so whether we will be availing 50% in one year and 50% in subsequent year or 100% credit in same year?

pls help

Replies (2)

For availing Cenvat Credit on capital goods, following condition have to be fulfilled.

a) Such goods must relate to manufacturing/production other than Motor Car.

b) 50% of  total excise value can be taken as cenvat credit in the year of receipt.

c) Balance 50% can be taken in subsequent year/years.

if you are a manufacturer than 50% of CVD and 100% of SAD in first yr

Balance in subsequent year

if you are aservice provider 50% in the first yr of CVD and nothing for SAD


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