Cenvat credit availibility on input received
This query is : Resolved
18 April 2016
Inputs of Rs 20,000 received in factory in the month of June. However invoice dated 2 July was received on 4th July.
My view: I can take credit in June as credit is available as soon as goods are received
ICAI Answer: Cannot be utilised in June as per proviso Rule 3(4) read with Rule 9(1)
Which view is correct?
My view: I can take credit in June as credit is available as soon as goods are received
ICAI Answer: Cannot be utilised in June as per proviso Rule 3(4) read with Rule 9(1)
Which view is correct?
20 April 2016
ICAI view is correct.
Material is received in the month of June but actual invoice issued on july, then you cann't avail credit in the month of June.
Material is received in the month of June but actual invoice issued on july, then you cann't avail credit in the month of June.
20 April 2016
Sir can you please explain because I am unable to find any such condition in the rules
If you can let me know what is the exact sentence used in the rules which says that invoice has to be issued first
Because I could only find that as per Rule 4 you can take credit as soon as goods are received in the factory
If you can let me know what is the exact sentence used in the rules which says that invoice has to be issued first
Because I could only find that as per Rule 4 you can take credit as soon as goods are received in the factory
21 April 2016
Cenvat Credit can be availed only on receipt of Input with Cenvat copy ( Duplicate for transporter copy) hence if material received in the month of June on Challan but Cenvat invoice issued in the month of July then you can avail this credit in the month of July onward within period of 1 year.
Rule 4. Conditions for allowing CENVAT credit.-
(1) The CENVAT credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer or in the premises of the provider of output service
(2) (a) The CENVAT credit in respect of capital goods received in a factory or in the premises of the provider of output service at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year
Rule 4. Conditions for allowing CENVAT credit.-
(1) The CENVAT credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer or in the premises of the provider of output service
(2) (a) The CENVAT credit in respect of capital goods received in a factory or in the premises of the provider of output service at any point of time in a given financial year shall be taken only for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same financial year
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
- Reopen of assessment proceeding
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Gift Received from nonblood relative
- Management System (IMS)
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- 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
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
