Cenvat credit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 April 2012
IF ENGINEERING UNIT MANUFACTURE EXCISABLE GOODS AND IT USE CONSUMABLE TOOLS LIKE DRILL, INSERT, CUTTER & COOLANT OIL TO MANUFACTURE A FINAL PRODUCT.
WHETHER COMPANY GET 100% CREDIT ON CONSUMABLE ITEMS OR 50% IN CURRENT YEAR AND 50% IN A SUBSIQUENT YEAR?
WHETHER COMPANY GET 100% CREDIT ON CONSUMABLE ITEMS OR 50% IN CURRENT YEAR AND 50% IN A SUBSIQUENT YEAR?
28 April 2012
These consumable are treated as input, and generally you should get 100% credit. However, you need to check the tariff classification of these products as Cenvat Credit Rules defines capital goods as items falling under particular tariff heading. Thus, even if your inputs (as per accounting standards) falls under those heading- it shall be treated as capital goods for the purpose of Cenvat Credit.
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