CENVAT CREDIT
This query is : Resolved
Jiwan singh
(Querist)
19 August 2009
I CPL LTD.-uttrakhand purchase a raw material from ABC LTD..-mumbai, cenvat charged 10000, & directly delevered to NOVELTY PLASTIC -mumbai for labour job agst. Excise challan annexure 2 .
My questions :
1-Who will take cenvat credit on raw material purchase from ABC LTD. (Any notification please mention)
2-Will NOVELTY PLASTIC charged excise duty or service tax when he will raised invoice to CPL LTD.
Can we take VAT credit of material purchase within state for repair of machinery .any notification please mention.
CPL LTD. Has two units in himanchal & uttrakhand each turnover 100 laks.
These are SSI Unit or Not ?
My questions :
1-Who will take cenvat credit on raw material purchase from ABC LTD. (Any notification please mention)
2-Will NOVELTY PLASTIC charged excise duty or service tax when he will raised invoice to CPL LTD.
Can we take VAT credit of material purchase within state for repair of machinery .any notification please mention.
CPL LTD. Has two units in himanchal & uttrakhand each turnover 100 laks.
These are SSI Unit or Not ?
Madhukar N Hiregange
(Expert)
20 August 2009
It is assumed that you are not located in exzcise free zone.
Cenvat credit can be availed either by CPL or Movelty plastics depending on the choice. If Novelty plastics is going to discharge the ED on the finished materials based on the price of CPL sale then they can avail the credit.
Otherwsie he can work under Rule 4 (5) (a) / Not 214/86 as a job worker. Since the process amounts to manufacture there is no service tax liability
As long as the pr yr value of clearacens did not exceed Rs. 400 lakhs for all units taken together the same are SSI under central excise eligible for exemption upto Rs. 150 Lakhs.
Cenvat credit can be availed either by CPL or Movelty plastics depending on the choice. If Novelty plastics is going to discharge the ED on the finished materials based on the price of CPL sale then they can avail the credit.
Otherwsie he can work under Rule 4 (5) (a) / Not 214/86 as a job worker. Since the process amounts to manufacture there is no service tax liability
As long as the pr yr value of clearacens did not exceed Rs. 400 lakhs for all units taken together the same are SSI under central excise eligible for exemption upto Rs. 150 Lakhs.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- MSME disclosure and disallowance
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
