Cenvat credit availment

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This query is : Resolved

Dasharath Appa Pujari (Querist)

29 January 2013 Dear All,

There was a sale by EOU unit to manufacturing unit in DTA.The invoice shows the following tax break up.

Invoice Amt - 100
BCD - 3.75
CVD - 12.45
ED Cess on CVD - Nil
SHE Cess on CVD - Nil
ED Cess 2% - 0.324
SHE Cess 1% - 0.162
Total DTA Duty - 16.686
ED Cess on DTA 2% - 0.33372
SHE Cess 1% - 0.16686
VAT @ 12.5% - 14.65

Pls clarify which tax portion can be availed as Cenvat Credit?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

04 February 2013 Rule 3(7)(a) of the Cenvat Credit Rules 2004 read with Notification No. 23/2003 dated March 31, 2003 specifies that Cenvat credit would be allowed for only 50% of the amount paid on countervailing duty for purchases made from the 100% EOU. As the components have been purchased in a domestic tariff area from the 100% EOU, Cenvat credit would be available up to 50% of the duty indicated in the invoices raised by the EOU.

for more info:

https://www.caclubindia.com/experts/formula-for-availing-cenvat-credit-in-case-of-100-eou-dta-410120.asp#.UQ93dPL7crc

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