Cenvat credit
This query is : Resolved
25 August 2011
for removal under rule 3(5) and 3(5A),
rule 3(6) says cenvat credit available as if duty paid by the person who removed the goods.
isn't the manufacturer the one who removes the input.or capitalgood
thank you
rule 3(6) says cenvat credit available as if duty paid by the person who removed the goods.
isn't the manufacturer the one who removes the input.or capitalgood
thank you
PAWAN KUMAR
(Expert)
25 August 2011
The amount paid on removal of input and capital goods as such or capital goods as waste and scrap under 3(5) and 3(5A) shall be available as cenvat credit if the sender has either reversed the cenvat taken or paid the duty on the transaction value.
25 August 2011
So the sender first takes the credit,
then reverses or pays it as per rule 5A or 5 on removal
and then again takes credit for which duty is paid or reversed???
then reverses or pays it as per rule 5A or 5 on removal
and then again takes credit for which duty is paid or reversed???
U S Sharma
(Expert)
01 September 2011
@ Barli
1st point .......... capital goods input credit is available to Manufacturer of Exisable goods on which excise duty is payable / Taxable service provider , NOT TO SENDER
when its capital goods, obviously its a factory or industrial unit.
a) factory takes input credit on capital goods.
b) after certain period if factory wish to dispose the machines (capital goods), it will reverse / Pay duty under rule 3(5) or 3(5A) and clear the goods from the factory premises to somebody else, i.e the capital goods are sold.
c) when the capital goods are sold/ removed from factory, how the factory will take credit of duty reversed under rule 3(5) or 3(5A)? its available to the next person (buyer) only who has taken the capital goods from the factory.
1st point .......... capital goods input credit is available to Manufacturer of Exisable goods on which excise duty is payable / Taxable service provider , NOT TO SENDER
when its capital goods, obviously its a factory or industrial unit.
a) factory takes input credit on capital goods.
b) after certain period if factory wish to dispose the machines (capital goods), it will reverse / Pay duty under rule 3(5) or 3(5A) and clear the goods from the factory premises to somebody else, i.e the capital goods are sold.
c) when the capital goods are sold/ removed from factory, how the factory will take credit of duty reversed under rule 3(5) or 3(5A)? its available to the next person (buyer) only who has taken the capital goods from the factory.
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
- Depreciation Chart Companies Act
- 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
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- 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?
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
