Cenvat credit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2012 we are purchasing scrap from 100% EOU company, they are charging the following duties in their invoice, 1)5% on CD50% of BCD, 2)CVD 12%, 3)Edu cess on CD 3%, 4)Cenvat12% and ED and HEC for cenvat. above 4 items what are they eligible for take vat credit? pls advice

CA Sumat Singhal

CA Sumat Singhal (Expert)
Follow

01 September 2012 Rule 3(7)(a) of the Cenvat Credit Rules 2004 read with Notification No. 23/2003 dated March 31, 2003 specifies that Cenvat credit would be allowed for only 50% of the amount paid on countervailing duty for purchases made from the 100% EOU. As the components have been purchased in a domestic tariff area from the 100% EOU, Cenvat credit would be available up to 50% of the duty indicated in the invoices raised by the EOU.

NOW REFER NEW PROVISIONS FOR SAME. Experts are invited

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2012 thank you very much, but bord issued the notice for availing credit on Edu.cess and Hedu.cess, pls advice