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)
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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

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