Cenvat credit

Save Share

This query is : Resolved

Mohit Saboo (Querist)

04 January 2015 Dear Sir,

Pls give me some e.g. on the point "Cenvat payment not required when inputs/Capital Goods removed for provision of output service" of Rule 3(5) of Cenvat Credit Rules, 2004

Thanks in advance...

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

05 January 2015 (l) "input service" means any service,-

(i) used by a provider of taxable service for providing an output service.

When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9:

Provided that such payment shall not be required to be made where any inputs or capital goods are removed outside the premises of the provider of output service for providing the output service:
Amended vide Notification No. 10/2008 -Central Excise (N.T.), dated 01/03/2008)

Provided further that such payment shall not be required to be made when any capital goods are removed outside the premises of the provider of output service for providing the output service and the capital goods are brought back to the premises within 180 days, or such extended period not exceeding 180 days as may be permitted by the jurisdictional Deputy Commissioner of Central Excise, or Assistant Commissioner of Central Excise, as the case may be, of their removal.

Message likes : 1 times

Mohit Saboo

Mohit Saboo (Querist)

05 January 2015 Sir under this "removed" of capital goods means sale of that capital goods na ?

Thanks...

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

06 January 2015 yes

regards,

ramesh verma

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now